President Donald Trump confirmed on Wednesday that the United States has seized an oil tanker off the coast of Venezuela, a move that immediately intensified political tensions and sent oil prices ticking upward. “We’ve just seized a tanker on the coast of Venezuela, large tanker, very large, largest one ever, actually, and other things are happening,” Trump said. When pressed on what would happen to the oil on board, he added, “We keep it, I guess.”
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What did Trump say about the seized tanker?
The operation signals a tougher approach toward Venezuela’s oil industry, the country’s primary source of revenue. It is also the first known action against a tanker since Trump ordered a major U.S. military build-up in the region and launched strikes on suspected drug vessels, moves that drew scrutiny from legal experts and Democratic lawmakers, as per a report by Reuters.
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Where was the tanker intercepted?
Three U.S. officials, who spoke anonymously, said the U.S. Coast Guard led the operation but did not release details about the tanker’s flag or precise location. However, British maritime risk management group Vanguard reported that the vessel believed to be seized is the Skipper. Washington has previously sanctioned the tanker for alleged involvement in Iranian oil trading when it operated under the name Adisa, as per a report by Reuters.ALSO READ: Ellen DeGeneres and Portia De Rossi quit the UK, say country life was too boring, head back to the US
Satellite data reviewed by TankerTrackers.com and internal PDVSA shipping records show the Skipper departed Venezuela’s main oil port of Jose between December 4 and 5 after loading Merey heavy crude.
How did the market react to the operation?
Oil futures rose as news of the seizure spread. Brent crude settled at $62.21 per barrel, up 27 cents, while U.S. West Texas Intermediate gained 21 cents to close at $58.46 per barrel. Venezuelan President Nicolas Maduro, speaking at a commemorative march, did not address the incident, as per a report by Reuters.
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Venezuela exported more than 900,000 barrels per day last month, its third-highest monthly average of the year, as PDVSA increased naphtha imports to dilute its extra heavy crude. Until now, Washington had not directly interfered with the country’s oil shipments, leaving analysts questioning how this move may affect future exports, as per a report by Reuters.
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FAQs
Which tanker was reportedly seized by the U.S.?
The tanker is believed to be the Skipper, according to maritime group Vanguard.
How did the seizure affect oil prices?
Brent and WTI crude both rose 0.4% after the news broke.
