US seizes oil tanker off coast of Venezuela, Trump says

[WASHINGTON] The US has seized an oil tanker off the coast of Venezuela, President Donald Trump said on Wednesday, ratcheting up tensions with Caracas in a move that also raised oil prices.

“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.

Asked what would happen with the oil, Trump said: “We keep it, I guess.”

Separately, US Attorney General Pam Bondi said on Wednesday that the United States had executed a seizure warrant for a crude oil tanker used to transport sanctioned oil from Venezuela and Iran.

“For multiple years, the oil tanker has been sanctioned by the United States due to its involvement in an illicit oil shipping network supporting foreign terrorist organisations,” Bondi said on X.

The seizure could signal intensifying efforts to go after Venezuela’s oil, the country’s main source of revenue.

It is the first known action against an oil tanker since Trump ordered a massive US military build-up in the region and carried out strikes against suspected drug vessels, operations that have raised concerns among Democratic lawmakers and legal experts.

Three US officials, speaking on the condition of anonymity, said the operation was led by the US Coast Guard. They did not name the tanker, which country’s flag it was flying or exactly where the interdiction took place.

British maritime risk management group Vanguard said the tanker Skipper was believed to have been seized off Venezuela early on Wednesday. The US has imposed sanctions on the tanker for what Washington said was involvement in Iranian oil trading when it was called the Adisa.

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The Skipper left Venezuela’s main oil port of Jose between Dec 4 and 5 after loading Venezuela’s Merey heavy crude, according to satellite info analysed by TankerTrackers.com and PDVSA’s internal shipping data.

Oil futures rose following news of the seizure. After trading in negative territory, Brent crude futures rose 27 cents, or 0.4 per cent, to settle at US$62.21 a barrel, while US West Texas Intermediate crude futures gained 21 cents, also 0.4 per cent, to close at US$58.46 per barrel.

Venezuelan President Nicolas Maduro on Wednesday spoke at a march commemorating a military battle, without addressing reports of the tanker‘s seizure.

Impact on oil?

Venezuela exported more than 900,000 barrels per day (bpd) of oil last month, the third-highest monthly average so far this year, as state-run company PDVSA imported more naphtha to dilute its extra heavy oil output. Even amid increasing pressure over Maduro, Washington had until now not moved to interfere with the country’s oil flows.

Venezuela has had to deeply discount its crude in its main buyer, China, due to growing competition with sanctioned oil from Russia and Iran.

“This is just yet another geopolitical/sanctions headwind hammering spot supply availability,” Rory Johnston, an analyst with Commodity Context, said.

“Seizing this tanker further inflames those prompt supply concerns but also doesn’t immediately change the situation fundamentally because these barrels were already going to be floating around for a while,” Johnston said.

Chevron, which partners with state oil company PDVSA, said on Wednesday that its operations in the country are normal and continuing without disruption.

The company, which is responsible for all Venezuelan crude exports to the US, last month increased crude exports to the US to some 150,000 bpd from 128,000 bpd in October.

Increasing pressure on Maduro

Maduro has alleged that the US military build-up is aimed at overthrowing him and gaining control of the Opec nation’s vast oil reserves.

Since early September, the Trump administration has carried out more than 20 strikes against suspected drug vessels in the Caribbean and Pacific, killing more than 80 people.

Experts say the strikes may be illegal, since there has been little or no proof made public that the boats are carrying drugs or that it was necessary to blow them out of the water rather than stop them, seize their cargo and question those on board.

Concerns about the strikes increased this month after reports that the commander overseeing the operation ordered a second strike that killed two survivors.

A Reuters/Ipsos poll published on Wednesday found that a broad swath of Americans oppose the US military’s campaign of deadly strikes on the boats, including about one-fifth of President Donald Trump’s Republicans.

Trump has repeatedly raised the possibility of US military intervention in Venezuela. In a sweeping strategy document published last week, Trump said his administration’s foreign policy focus would be on reasserting its dominance in the Western Hemisphere. REUTERS