The Japan Times - Cuba’s bleak oil crisis

EUR -
AED 4.350475
AFN 77.000016
ALL 96.454975
AMD 452.047591
ANG 2.120545
AOA 1086.286213
ARS 1725.238026
AUD 1.710479
AWG 2.135258
AZN 2.007664
BAM 1.951672
BBD 2.40163
BDT 145.711773
BGN 1.989397
BHD 0.449557
BIF 3532.68688
BMD 1.184609
BND 1.510131
BOB 8.239571
BRL 6.269424
BSD 1.192242
BTN 109.499298
BWP 15.600223
BYN 3.39623
BYR 23218.339784
BZD 2.398137
CAD 1.618478
CDF 2683.139764
CHF 0.916298
CLF 0.026022
CLP 1027.494776
CNY 8.235107
CNH 8.235012
COP 4347.219511
CRC 590.460955
CUC 1.184609
CUP 31.392143
CVE 110.03271
CZK 24.351003
DJF 212.331747
DKK 7.467676
DOP 75.072465
DZD 154.147531
EGP 55.878723
ERN 17.769138
ETB 185.235695
FJD 2.611648
FKP 0.865278
GBP 0.866695
GEL 3.192536
GGP 0.865278
GHS 13.062424
GIP 0.865278
GMD 86.476639
GNF 10463.043965
GTQ 9.145731
GYD 249.464409
HKD 9.250553
HNL 31.472956
HRK 7.534477
HTG 156.052534
HUF 381.797757
IDR 19913.694806
ILS 3.686918
IMP 0.865278
INR 108.607225
IQD 1562.095668
IRR 49901.661585
ISK 145.008115
JEP 0.865278
JMD 186.857891
JOD 0.839889
JPY 183.519063
KES 153.939966
KGS 103.594234
KHR 4794.938126
KMF 491.612449
KPW 1066.148258
KRW 1730.03927
KWD 0.36358
KYD 0.99369
KZT 599.696388
LAK 25660.935532
LBP 106778.978995
LKR 368.751529
LRD 214.927175
LSL 18.932911
LTL 3.497842
LVL 0.716558
LYD 7.482204
MAD 10.81612
MDL 20.055745
MGA 5328.75048
MKD 61.509887
MMK 2488.068394
MNT 4224.768089
MOP 9.588717
MRU 47.577162
MUR 54.077512
MVR 18.314459
MWK 2067.635018
MXN 20.751444
MYR 4.669768
MZN 75.530403
NAD 18.932592
NGN 1654.756728
NIO 43.877925
NOK 11.494689
NPR 175.200353
NZD 1.973375
OMR 0.457075
PAB 1.192378
PEN 3.986667
PGK 5.10431
PHP 69.772884
PKR 333.562994
PLN 4.217072
PYG 7987.138359
QAR 4.347422
RON 5.089195
RSD 117.152186
RUB 90.544141
RWF 1739.763902
SAR 4.443236
SBD 9.538015
SCR 17.104588
SDG 712.542061
SEK 10.581202
SGD 1.50757
SHP 0.888764
SLE 28.815636
SLL 24840.661178
SOS 681.469978
SRD 45.074975
STD 24519.018157
STN 24.448799
SVC 10.432843
SYP 13101.273866
SZL 18.924811
THB 37.603637
TJS 11.131048
TMT 4.146132
TND 3.425967
TOP 2.852254
TRY 51.525118
TTD 8.095909
TWD 37.508269
TZS 3057.464743
UAH 51.10611
UGX 4263.000384
USD 1.184609
UYU 46.272704
UZS 14577.164634
VES 409.805368
VND 30762.5233
VUV 140.721447
WST 3.211216
XAF 654.588912
XAG 0.015713
XAU 0.000262
XCD 3.201465
XCG 2.148954
XDR 0.814081
XOF 654.575127
XPF 119.331742
YER 282.321978
ZAR 19.247058
ZMK 10662.910096
ZMW 23.400599
ZWL 381.44367
  • SCS

    0.0200

    16.14

    +0.12%

  • RBGPF

    1.3800

    83.78

    +1.65%

  • CMSC

    0.0500

    23.76

    +0.21%

  • RIO

    -4.1000

    91.03

    -4.5%

  • NGG

    0.2000

    85.27

    +0.23%

  • BCE

    0.3700

    25.86

    +1.43%

  • AZN

    0.1800

    92.77

    +0.19%

  • CMSD

    -0.0400

    24.05

    -0.17%

  • GSK

    0.9400

    51.6

    +1.82%

  • RELX

    -0.3700

    35.8

    -1.03%

  • RYCEF

    -0.4300

    16

    -2.69%

  • BTI

    0.4600

    60.68

    +0.76%

  • VOD

    -0.0600

    14.65

    -0.41%

  • BP

    -0.1600

    37.88

    -0.42%

  • BCC

    0.5100

    80.81

    +0.63%

  • JRI

    0.1400

    13.08

    +1.07%


Cuba’s bleak oil crisis




The arrest of Venezuelan president Nicolás Maduro in early January 2026, and the subsequent pledge by Washington to reroute Venezuela’s oil away from its Caribbean ally, has jolted Havana into a new economic crisis. Cuba’s lifeline to cheap Venezuelan crude has shrivelled; the last tanker from the state oil company PDVSA left Venezuela’s José port in mid‑December and arrived in Havana with its transponder off, carrying about 600,000 barrels. In 2025 Venezuela supplied roughly 26,500 barrels per day, a third of Cuba’s daily needs, while Mexico contributed about 5,000 barrels. After Maduro’s capture, Venezuelan fuel deliveries stopped altogether and U.S. officials declared a virtual blockade on Caracas’ tankers, leaving Cuba with insufficient oil reserves and only modest shipments from Mexico. Energy analyst Jorge Piñón of the University of Texas warned that there is “no light at the end of the tunnel” for Cuba to survive the next few months without Venezuelan oil.

An energy grid in freefall
Cuba’s antiquated, oil‑fired power grid has lurched from crisis to crisis in recent years. A nationwide grid collapse in March 2025 plunged millions into darkness after a transmission line shorted near Havana, forcing a restart of the entire system and leaving both of the island’s main power stations idle. The collapse followed months of rolling blackouts outside the capital that peaked at 20 hours a day, with entire rural areas losing electricity for longer than they had power. Residents resorted to charcoal fires for cooking and scrambled to obtain ice to keep food cold. Cuba’s top electricity official warned that repairs would be slow, while shortages of fuel, medicine, water and food made life “unbearable”.

Blackouts have triggered social unrest. In March 2024, crowds in Santiago de Cuba banged pots and demanded “power and food” when the lights went out at a state‑run market. Residents interviewed by reporters spoke of electricity outages exceeding 10 hours a day. Energy minister Vicente de la O’Levy publicly acknowledged that shortages of power “provide the spark for any protest”. In November 2024, the government warned that it would not tolerate “public disorder” as scattered demonstrations erupted following another nationwide blackout caused by Hurricane Rafael; prosecutors announced the preventive detention of protesters on charges of assault and vandalism. The state responded by distributing emergency rations and accelerating repairs, but rolling blackouts continue across the country.

Blackouts and sanctions squeeze the economy
Cuba’s economy was already contracting before the current crisis. The pandemic and the near‑total shutdown of tourism caused a 10.9% drop in GDP in 2020, according to international statistics. Minor growth in 2021 and 2022 (1.3% and 1.8%) gave way to a return to recession in 2023–24. The United Nations forecasts a 1.5% decline for 2025, leaving Cuba and Haiti as the only Latin American economies still shrinking. Official statistics show that 11 of the country’s 15 economic sectors are contracting: sugar output is down 68%, fishing 53% and agriculture 52%, while manufacturing has fallen 41%. Export earnings fell by $900 million in 2024 and imports were 18% below forecast. Cuban economists estimate that the economy shrank about 4% in 2024, on top of a 1.9% contraction in 2023.

Blackouts amplify these losses. Economists inside Cuba say that the power crisis has paralysed industry and curtailed transport. Households lose refrigeration; water pumps and medical facilities falter; and businesses without generators lose productive hours. In many provinces, blackouts of 20 hours a day have become routine. A human‑rights blog citing utility reports noted generation shortfalls of 1,300 to 1,700 megawatts, meaning that nearly half of national demand went unmet during peak periods.

The collapse of Venezuelan oil supplies will aggravate this deficit. Cuba produces less than half of the electricity it needs and already imports most of its fuel. PDVSA shipments under the long‑standing “oil for doctors” programme once kept Cuba’s thermoelectric plants running; without them, generation capacity is set to plunge. No other ally is stepping in: energy researcher Piñón notes that Angola, Algeria, Brazil and even Russia have not offered significant support. Mexico’s occasional cargoes of 85,000 barrels are insufficient to “keep the lights on across the island”.

Political strain and regime anxiety
The political ramifications are severe. U.S. President Donald Trump has portrayed the seizure of Maduro as part of a broader crackdown on Latin American regimes. During a January 4 press conference, he said that “Cuba looks like it’s ready to fall”, declaring that the island’s government had no income now that Venezuelan oil was cut off. He threatened further military action against Caracas if the remaining officials did not cooperate, and suggested that Colombia and Mexico could also be targets. Trump’s comments have fuelled speculation about regime change, and have unsettled Cuba’s leadership.

U.S. intelligence reports acknowledge the island’s grim economic state but are ambivalent about whether hardship will topple the government. Confidential assessments described key sectors like agriculture and tourism as “severely strained” by frequent blackouts and trade sanctions. Analysts warned that the loss of oil imports from Venezuela could make governing more difficult. One official said that blackouts outside Havana were lasting an average of 20 hours a day. Yet the assessments concluded that economic suffering does not necessarily translate into regime collapse.

Cuban leaders nevertheless display signs of alarm. President Miguel Díaz‑Canel vowed that “nobody tells us what to do” and pledged to defend the homeland “until the last drop of blood”. The prosecutor’s office warned that it would not tolerate disorder during the blackouts and detained protesters for “assault, public disorder and vandalism”. Energy minister Vicente de la O’Levy admitted that power cuts fuel social tensions. Local officials have rushed to deliver subsidised food to calm restive communities in Santiago and other provinces. Behind the scenes, the government is quietly reassigning fuel supplies, rationing diesel for hospitals and planning emergency imports of floating power plants.

A humanitarian and demographic crisis
The economic implosion is driving an unprecedented exodus. Independent demographers estimate that Cuba’s population has fallen 25% in four years, dropping below nine million as hundreds of thousands migrate annually. A U.S. intelligence official cited by the press suggested that the population is likely under nine million. The loss of younger people erodes the labour force and saps the regime’s support base; an emeritus professor, Richard Feinberg, warns that when people are “really hungry,” they focus on survival rather than politics.

Human development indicators are slipping. The United Nations ranked Cuba 97th in its 2025 human development index, down from 57th in 1990. The energy crisis is battering public health and education. Persistent power cuts of up to 22 hours a day in Santiago de Cuba have undermined hospitals and schools. Diplomats note that Cuba produces less than half of the electricity it needs and argue that “the collapse has already happened”.

Outlook: collapse or endurance?
The fall of Nicolás Maduro removes the central pillar of Cuba’s energy system and intensifies the island’s descent into darkness. Without Venezuelan fuel, Cuba faces longer blackouts, deeper economic contraction and heightened social unrest. Yet history cautions against assuming an imminent regime collapse. The Cuban state retains powerful security services, a one‑party political structure and the ability to ration scarce resources. It has weathered decades of sanctions, the collapse of the Soviet Union and previous “special periods” of hardship.

What is different now is the confluence of crises: an energy grid on the brink, an economy mired in recession, a demographic haemorrhage and the pressure of a hostile U.S. administration. Whether these forces will finally overwhelm the Cuban regime remains uncertain. For ordinary Cubans enduring darkness, ration lines and empty shelves, however, the immediate reality is clear: the fall of Maduro has pushed their country towards its most severe crisis in decades.