- My immediate thought had turned to Cuba, as I'd already mentioned how the US oil embargo was crimping an already crappy socialist lifestyle on that God-forsaken little island.
- The importance of the Venezuelan pipeline to the Cuban communist regime cannot be underestimated. Cuba didn't buy oil from Venezuela - it was given to them.
1. The End of the "Free Oil" Lifeline
For over two decades, the single most important pillar of the Cuban economy has been the "Barrio Adentro" agreement, which saw Venezuela ship roughly 50,000 barrels of oil per day to Havana essentially for free. With the US military now securing Venezuelan ports and oil fields following yesterday's operation, these shipments have hit zero overnight. Cuba, which is already cash-strapped, simply does not have the foreign currency reserves to buy this amount of oil on the open market at global prices, meaning the island's energy supply has effectively been cut in half instantly.
2. The Loss of the "Resale" Revenue Stream...
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