Venezuela Cuts Oil Subsidies To Caribbean Nations

Low oil prices are forcing Venezuela to cut a generous subsidy program to Cuba and a dozen other Caribbean nations.

Venezuela is Latin America's largest oil producer, and its economy depends heavily on oil exports. It's been been hit hard by the tumbling oil prices.

"Venezuela is in desperate straits. The oil sector has been deteriorating, and now with the slumping oil prices, they needed cash desperately," says Michael Shifter, the president of the Inter-American Dialogue.

Shifter says it's no surprise that Venezuela is trimming back a program that provides heap oil at favorable rates to many of its Caribbean neighbors that are dependent on energy imports. Petrocaribe was created a decade ago by late Venezuelan president Hugo Chavez. It provided subsidized oil to countries such as Belize, Haiti and Jamaica.

http://www.npr.org/blogs/thetwo-way/2015/03/30/396399497/venezuela-cuts-oil-subsidies-to-caribbean-nations