Oil and Cuba after Chávez

Oil and Cuba after Chávez



Hugo Chávez' death could lead, immediately, to a struggle for power in

Venezuela. For non-Venezuelans, the first two questions that spring to

mind are, in no particular order: How will it impact the oil markets?

What will it mean for Cuba's future? Schwartz Fellow Steve LeVine writes

in Quartz that Chávez' death is unlikely to immediately end Venezuela's

policy of nationalizing the industry, as the national assembly is still

dominated by Chávez supporters. But, he notes, a more freely elected

Venezuelan president could decide to pump more oil, and renegotiate the

preferential deals enjoyed by China and Cuba. Speaking of Cuba, Former

Schwartz Fellow Jorge Castañeda, is quoted in a Wall Street Journal just

days before Chávez' death, noting that Cuba's leadership has fully

leveraged Fidel Castro's early and strong political support for Chávez

into financial support from Venezuela, allowing poor, small Cuba to

negotiate hundreds of deals with oil-rich Venezuela that are favorable

to Havana. Chávez death could imperil the Cuban economy just as the

ruling Castros are in their twilight.



http://inthetank.newamerica.net/blog/2013/03/oil-and-cuba-after-ch%C3%A1vez