Pemex's Oil Trade with Cuba Fuels Diplomatic Tensions

Mexico's Pemex has supplied $496 million worth of oil to Cuba since 2023, sparking tensions with the U.S. over potential tariffs on oil sales to Cuba. Despite this, Mexico plans to continue exports as long as there is availability, amidst domestic refining increases.

Mexico's state energy company, Pemex, has supplied $496 million worth of crude oil and petroleum products to Cuba, according to CEO Victor Rodriguez. This commercial agreement, effective since 2023, has sparked diplomatic tensions with the United States.

In response to potential U.S. tariffs on countries trading oil with Cuba, Mexican President Claudia Sheinbaum highlighted the significant humanitarian shipments provided to the island beyond commercial arrangements. The U.S. plans to impose tariffs have prompted Mexico to explore diplomatic solutions.

As Mexico strengthens its domestic refining capabilities, led by the new Olmeca Refinery, Pemex aims to reduce global exports, including to Cuba, handling local demands and foreign obligations strategically.

(With inputs from agencies.)