Venezuela Cuts Their Oil Shipment to Cuba and the Carribean By Half


OPEC considers Venezuela the 5th largest oil export nation in the world. From the 1950s to the 1980s, it was one of the richest nations until oil prices collapsed in the 1980s. Venezuela wasn’t able to return to the thriving nation it once was said by David Osio in an interview. In 2012, Venezuela exported 400,000 barrels of crude oil a day to Cuba. In 2015, the troubled nation reduced its crude oil exporting to 200,000 barrels per day. The crude oil lowered the deficit from around $30 billion to about $22.5 billion back in 2015. Cuba is the most important ally Venezuela has under the Madura administration. Being the largest oil producing nation in Latin America, Venezuela’s economy depends on their crude oil sales.
Cuba has not been given an exception for the cuts made in oil shipment when shipment prices started dropping in the summer of 2014. There are reports according to David that Cuba has only received 55,000 barrels of oil per day since September 2014. Paid services rendered from physicians and sports trainers helped contribute to the fee paid by Cuba for Venezuelan crude oil. Other countries, such as Dominican Republic and Jamaica have had their crude oil supplies cut back almost 75 percent. The dwindling food and energy supply is rooted in the lower oil prices. It has also hurt the economy by cutting exports of oil. Prices are the lowest in more than a decade.