Brazil to sign oil deal with Cuba
Brazil plans to sign oil deal with Cuba - CNN.com.
Last week I posted a link about a BBC story outlining the Cuban clames of very large off shore oil reserves. The folks at Petrobras (PBR: 39.00 -1.48 -3.66%) must be reading my blog, ’cause today I find the above article about PBR’s plan to sign and oil exploration deal with Cuba.
Brazilian President Luiz Inacio Lula da Silva has been in Cuba greasing the skids and the Brazilians may have pulled a fast on on Venezuelan President Hugo Chavez. Venezuela has become Cuba’s major trading partner including selling 100,000 barrels per day of low cost oil to supplement the 60,000 barrels per day Cuba pumps for itself.
It will be interesting to see Mr. Chavez’ reaction to Brazil’s move towards increased trade with Cuba.
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Chavez and Lula get along quite well. They’re spearheading a movement toward Latin Ameican Integration. Cuba needs all the help it can get, and all the investment it can get as well. Cuba is completely open to US investment as well, but the problem is that US law won’t allow US companies to invest US money in this obviously lucrative opportunity.
Lula and Chavez don’t seem to be having any conflict over this process with Cuba, since both are part of a broader process of regional economic integration.
Follow the Cuban story at CubaNews, a free Yahoo news group now in its eighth year of service to the public. with 1300 subscriber, no charge to read or subscribe, it’s an invaluable resource, if I do say so myself.
Walter Lippmann
Los Angeles, California