The U.S. Treasury Department has decided to allow companies to apply for licenses to resell Venezuelan oil to Cuba, a decision aimed at addressing the acute fuel crisis currently affecting the island nation. This decision comes in response to the cessation of oil supplies from Venezuela to Cuba since early January, which has been exacerbated by tighter U.S. restrictions on Venezuelan oil exports following the arrest of President Nicolás Maduro. The import halt has significantly impacted Cuba's energy generation and fuel supplies for vehicles, homes, and the aviation sector.

For over 25 years, Venezuela has been the primary supplier of crude oil and fuel to Cuba, relying on bilateral agreements that primarily involved the exchange of products and services. However, U.S. pressures have disrupted this established trade route. Recent shipping data indicates that Mexico, a country that had emerged as an alternative supplier since 2023, has also ceased sending new shipments to Havana since January, further deepening Cuba's energy woes.

Major trading companies like Vitol and Trafigura have been responsible for a significant portion of Venezuelan oil exports, shipping millions of barrels to the United States and Europe. The new U.S. policy could potentially open avenues for these companies to engage in the resale of oil to Cuba, which may provide a much-needed lifeline to the Cuban government as it grapples with ongoing economic challenges and a worsening energy crisis.