US doing Venezuelans no favor by purchasing oil from its incompetent government

Fuel Fix:
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Under the Petrocaribe energy pact, Venezuela is still selling cheap crude to countries in the Caribbean – all the while its own economy continues to crumble. Petrocaribe was established in 2005 by Hugo Chavez to share Venezuela’s wealth, but fast forward eleven years, and the relationship continues to eat away at Venezuela’s main source of foreign income.

By the end of last year Venezuela was owed ~$23 billion by Petrocaribe countries – with some countries paying their bills using goods instead such as coffee, pasta, black beans and even blue jeans. Cuba is the biggest debtor, owing $15 billion; it has previously paid for oil via an even more unorthodox method – sending doctors, teachers and military advisers the other way.

Even though Venezuela is exporting consistent volumes to the Caribbean, this is dwarfed by how much crude it sends to the United States. Our ClipperData show that Venezuelan exports to the U.S. have averaged 750,000 bpd so far this year, while Caribbean flows are averaging about a fifth of this (ex those to Curacao and PdVSA’s facilities there)....
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Allowing the Maduro government to stay in power is a cruelty imposed on the Venezuelan people.  The oil purchases help him survive when there is plenty of oil in this country and from countries who are not hostile to US interests available on the market.

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