Venezuela's Discount Oil Program Feared To Be On Shaky Ground As Caribbean Eyes Alternatives

But Petrocaribe countries have been nervously searching for alternatives as Venezuela’s economic troubles continue to deepen. Venezuela has already started cutting back: The Wall Street Journal reported Caracas reduced oil exports to member countries by 20 percent last year compared with the year before. If crude prices stay where they are, Venezuela will have increasingly less means to finance this generosity. Member countries are scrambling to prepare. Cuba, Venezuela’s closest ally, began diversifying its investment and income sources years ago, establishing relationships with countries such as Russia, China and Brazil. Jamaica, with about $3 billion owed to Venezuela, is reportedly building its foreign reserves to create a buffer in case the program vanishes. The International Monetary Fund warned Caribbean countries last October to prepare contingency plans in case they no longer have access to the discount program.  More…