FINWIRES · TerminalLIVE
FINWIRES

US Sanctions Cuba's State-Owned Energy Company CUPET, Department of State Says

By

The US Treasury Department's Office of Foreign Assets Control has sanctioned Cuba's state-owned oil and gas company, CUPET, on Thursday, targeting what it described as the regime's use of energy resources to support military, intelligence, and security operations, the Department of State said Thursday.

The State Department said Cuba's leadership allegedly diverted fuel supplies and energy revenue while citizens face persistent shortages, long waits at gas stations and recurring blackouts.

Authorities have used energy resources to support security forces, generate profits through fuel resales and maintain political control through energy rationing.

The designation of Union Cuba-Petroleo, or CUPET, falls under Executive Order 14404, which President Donald Trump signed on May 1, 2026.

The department said the action also supports the objectives of Executive Order 14380 and National Security Presidential Memorandum 5, which promote democracy, free enterprise, human rights and rule of law in Cuba.

Under the sanctions, all CUPET property and interests in property subject to US jurisdiction must be blocked, while restrictions also apply to entities owned 50% or more by sanctioned parties.

The measures prohibit US persons from conducting transactions involving CUPET or other blocked parties unless authorized by OFAC.

Related Articles

Commodities

Biofuel Producers Benefit as Renewable Fuel Credits Approach Record Levels, EIA Says

Higher US biofuel blending targets have pushed renewable fuel credit prices close to record highs and improved returns for ethanol, biodiesel and renewable diesel producers, the US Energy Information Administration said Wednesday.Higher US biofuel blending mandates have doubled renewable fuel credit prices this year, while stronger gasoline and diesel markets improved biofuel economics, the EIA said.The federal renewable fuels program allows companies to earn tradable credits when they bring biofuels into the US fuel market, either through domestic production or imports, the EIA said.Fuel suppliers that fall short of government biofuel requirements can purchase those credits to satisfy compliance obligations, while others meet the targets by blending renewable fuels directly into gasoline and diesel.As of June 4, biomass-based diesel D4 credits traded at $2.41 and ethanol D6 credits traded at $2.37, both approaching the record levels reached in 2021, according to the agency.At current prices, biodiesel and renewable diesel producers can generate more than $3.50 per gallon from renewable fuel credits. Biodiesel creates 1.5 credits per gallon, while renewable diesel generates between 1.6 and 1.7 credits.The Environmental Protection Agency helped drive the increase after finalizing a rule on March 27 that raised renewable fuel blending requirements for both 2026 and 2027 above 2025 levels, the agency said.Higher gasoline and diesel prices have also improved biofuel economics. Since mid-March, ethanol on the US Gulf Coast has generally remained cheaper than gasoline on an energy-equivalent basis, encouraging additional blending.After including the value of renewable fuel credits, ethanol traded at a discount of more than $2 per gallon to gasoline during May and June, making it increasingly attractive for fuel suppliers, according to the agency.Higher renewable identification number, or RIN, prices have improved production and blending margins for biodiesel and renewable diesel producers in 2026, the EIA added.The agency said the Bean Oil-Heating Oil, or BOHO, spread remains a key measure of biodiesel and renewable diesel economics because it tracks the relationship between soybean oil feedstock costs and heating oil prices.RIN values have risen faster than the BOHO spread this year, indicating that higher renewable volume obligations are providing an additional boost to margins and supporting significantly stronger biodiesel and renewable diesel economics than in 2025, according to the agency.The Energy Information Administration expects record fuel ethanol and renewable diesel production in 2026 as higher blending mandates, stronger fuel prices and expanding biofuel capacity support output growth. Biodiesel production is also forecast to increase but remain below previous record highs.Fuel ethanol production is projected to rise 2% in 2026, with its share of gasoline consumption increasing to 10.7% from 10.5% in 2025, according to the EIA.Renewable diesel output is expected to increase 24% and biodiesel production 41% from 2025 levels, while all three fuels are forecast to post further gains in 2027 as renewable volume obligations rise again.

Commodities

US Natural Gas Update: Futures Rise on Warmer Weather Outlook Ahead of EIA Storage Data

US natural gas futures rose in after-hours trading on Wednesday as forecasts of hotter weather later this month boosted expectations of cooling demand, and traders positioned ahead of Thursday's weekly government storage report.Both the front-month Henry Hub contract and the continuous contract rose 1.43%, to $3.185 per million British thermal units.Natural gas prices recovered from a 1.5-week low as short covering emerged following warmer US weather forecasts, according to Barchart. Citing Vaisala, Barchart said forecasts shifted warmer in the Midwest and above normal across the eastern US for June 15-19, potentially increasing natural gas demand from power generators supplying air-conditioning load.Fundamentals were also supportive. Power-sector demand strengthened as summer cooling needs began to build, with power burn rising to 43.3 billion cubic feet per day, up 6.1% from the previous day, according to Gelber & Associates.LNG feedgas demand remained firm near 18.4 Bcf/d as export facilities continued recovering from seasonal maintenance.On the supply side, Barchart, citing BNEF data, said Lower 48 dry gas production was 109.1 Bcf/d on Wednesday, down slightly from the prior day but 1.8% above year-ago levels. Gelber similarly noted domestic production near a two-week low at 109.3 Bcf/d following recent regional pullbacks. Stronger Canadian imports, however, helped cushion supply losses, rising 7.4% day-over-day to 5.7 Bcf/d.Market attention remained focused on Thursday's Energy Information Administration storage report. Barchart said consensus expectations call for a 100-Bcf injection, while G&A estimated a slightly smaller 98-Bcf build. Both projections would compare with a 109-Bcf injection during the same week last year.Recent data have generally supported prices. "Chances for a third straight bullish EIA storage report surprise tomorrow could offer further upside," Eli Rubin of EBW Analytics said in a note, as reported by The Wall Street Journal. Rubin cautioned, however, that "rising production and lack of sustained summer heat may allow bullish early-summer seasonality to peak."

Commodities

Britain Advances Clean Energy Push With 37 GW of New Grid Connection Offers

More than half of connection offers for energy projects in Britain's sub-2030 pipeline have now been issued, marking a key milestone in reforms aimed at accelerating clean energy deployment, the National Energy System Operator said on Wednesday.NESO, working with the Energy Networks Association and network operators, said 58% of connection offers had been issued as of June 10. The offers cover 713 of 1,223 projects and represent around 37 gigawatts of new electricity generation and storage capacity, including offshore and onshore wind, solar, battery storage, and hydro projects.The reforms replace the previous "first-come, first-served" connections system, which industry participants said created bottlenecks and lengthy delays as projects accumulated in the queue.Connection offers specify when and where projects can connect to the grid and identify any transmission or distribution network upgrades required, providing developers with greater certainty to proceed with investment decisions.NESO said projects supported through the process could help unlock up to 40 billion British pounds ($54 billion) of annual clean energy investment and support Britain's economic growth and decarbonization goals."Today's milestone shows connections reform is delivering real results," NESO Chief Operating Officer Kayte O'Neill said, adding that the changes were helping ready-to-build projects connect faster.Distribution network operators have led the issuance of offers for projects seeking connections to lower-voltage distribution networks, while NESO has overseen offers for projects connecting to the high-voltage transmission system.ENA Chief Executive Lawrence Slade said network operators were already focused on the next phase of delivery following the completion of offers for protected projects.Energy Minister Michael Shanks said upgrading the grid and speeding up clean energy connections would help shield consumers from fossil fuel price volatility and support efforts to reduce electricity bills.Britain is also pursuing network expansion and planning reforms as part of its target to deliver a clean power system by 2030, NESO said.