Mexico shelves planned shipment of oil to Cuba amid US tensions

In a surprising move, Mexico's state oil company cancelled a crucial shipment of crude oil to Cuba, potentially influenced by increased US sanctions.

Mexico’s state oil company backtracked on plans to send a much-needed shipment of crude oil to Cuba, a long-time ally of ousted Venezuelan leader Nicolas Maduro.

Crude oil prices have been on the rise of late and the Russia’s invasion of Ukraine has further fuelled concerns of supply disruption leading to further spike in prices. (Representational image)  (Reuters)

Petroleos Mexicanos, which was expected to send a shipment this month, removed the cargo from its schedule, according to documents seen by Bloomberg. The shipment was set to load in mid-January and would have arrived in Cuba before the end of the month under the original schedule.

Pemex and Mexico’s Energy Ministry didn’t immediately return a message seeking comment.

While it’s unclear why the cargo was shelved, the removal comes as the administration of US President Donald Trump increases pressure on the Caribbean island. “THERE WILL BE NO MORE OIL OR MONEY GOING TO CUBA - ZERO! I strongly suggest they make a deal, BEFORE IT IS TOO LATE,” Trump said in a Truth Social post a week after Maduro’s capture by US forces.

Before Trump’s comments on Cuba, President Claudia Sheinbaum had said Mexico planned to continue supplying oil to Cuba as part of humanitarian aid to the island, a country plagued by chronic power outages, food and fuel shortages.

Mexico started sending oil to Cuba in 2023, when Venezuela reduced supplies amid its falling oil production. Pemex sent an average of one ship per month, or the equivalent of 20,000 barrels a day of crude oil last year, according to data compiled by Bloomberg.

The canceled shipment was expected to load in mid-January on board the vessel Swift Galaxy, according to the document. It was removed from the schedule without an explanation.