U.S. Treasury authorizes Venezuelan oil resale to Cuba. The policy shift allows licensed companies to resell Venezuelan crude to the island nation, potentially easing Cuba's severe fuel shortage that has crippled power generation and transportation. This comes after Washington took control of Venezuela's oil exports following Nicolas Maduro's capture in January, cutting off Cuba's primary energy source for over 25 years. Venezuela previously supplied Cuba through bilateral barter agreements, but that pipeline halted. Mexico also stopped shipments. Major trading houses Vitol and Trafigura now handle Venezuela's exports. However, Cuba faces a critical challenge: affordability. Without favorable payment terms, Cuba must pay spot market prices with cash or bank guarantees, which the struggling economy may not sustain.
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