USA blocks oil shipments to Cuba
→Power-plant operators cannot run oil-fired units without imported fuel
Change
USA has cut off oil sales to Cuba and threatened to impose tariffs on countries that ship fuel to the island, reducing available fuel for electricity generation.
Why it matters
Electricity generation remains far below what is necessary to meet demand because of dire fuel shortages and antiquated power plants. Only two small fuel deliveries have reached Cuba so far this year and a Hong Kong-flagged tanker recently resumed navigation after suspending its course, leaving imports constrained even after the national grid was restored.
Implications
- — Procurement teams at Cuba's state energy utility must secure alternative fuel deliveries immediately — failure will prolong generation shortfalls and trigger renewed nationwide blackouts.
- — National trade authorities that authorise fuel exports to Cuba must halt those authorisations immediately or face US-imposed tariffs on exported fuel.
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Source
View on Al Jazeera