The U.S. has seized an oil tanker off the coast of Venezuela, President Donald Trump said on Wednesday, a move that raised oil prices and is more likely to further inflame tensions between Washington and Caracas.
“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.
Trump has ordered a large U.S. military build-up within the region, including an aircraft carrier, fighter jets and tens of 1000’s of troops.
The seizure could signal latest and intensifying efforts to go after Venezuela’s oil, the country’s fundamental income.
Three U.S. officials, speaking on the condition of anonymity, said the operation was led by the U.S. Coast Guard. They didn’t 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 U.S. has imposed sanctions on the tanker for what Washington said was involvement in Iranian oil trading when it was called the Adisa.
Oil futures rose following news of the seizure. After trading in negative territory, Brent crude futures LCOc1 rose 27 cents, or 0.4%, to settle at $62.21 a barrel, while U.S. West Texas Intermediate crude futures CLc1 gained 21 cents, also 0.4%, to shut at $58.46 per barrel.
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The Venezuelan government didn’t immediately reply to a request for comment.
Venezuela exported greater than 900,000 barrels per day (bpd) of oil last month, the third-highest monthly average to date this 12 months, as state-run company PDVSA imported more naphtha to dilute its extra heavy oil output.
Even amid increasing pressure over Venezuelan President Nicolas Maduro, Washington had until now not moved to interfere with the country’s oil flows.
Venezuela has needed to deeply discount its crude in its fundamental buyer, China, because of growing competition with sanctioned oil from Russia and Iran.
“That is just one more 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 additionally doesn’t immediately change the situation fundamentally because these barrels were already going to be floating around for some time,” Johnston said.
INCREASING PRESSURE ON MADURO
Maduro has alleged that the U.S. military build-up is aimed toward overthrowing him and gaining control of the OPEC nation’s vast oil reserves.
Since early September, the Trump administration has carried out greater than 20 strikes against suspected drug vessels within the Caribbean and Pacific, killing greater than 80 people.
Experts say the strikes could also be illegal, since there was little or no proof made public that the boats are carrying drugs or that it was needed to blow them out of the water somewhat than stop them, seize their cargo and query those on board.
Concerns concerning 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 U.S. military’s campaign of deadly strikes on the boats, including about one-fifth of President Donald Trump’s Republicans.
Trump has repeatedly raised the opportunity of U.S. military intervention in Venezuela.
In a sweeping strategy document published last week, Trump said his administration’s foreign policy focus could be on reasserting its dominance within the Western Hemisphere.
The strategy outlines a “Trump Corollary” to the Monroe Doctrine, a more-than-200-year-old foreign policy statement that has been used the justify U.S. interventions in Latin America.