Oil gains support after US seizes vessel off Venezuela
Brent crude’s price has gained some support following news that the US Coast Guard has seized a sanctioned oil tanker off the coast of Venezuela.
IMAGE: Flags of the US and Venezuela. Getty Images
The news has put upward pressure on oil prices as it adds fresh strain to Washington and Caracas’ diplomatic ties.
US Attorney General Pamela Bondi shared a video on the social media platform X (formerly Twitter) showing army personnel seizing an oil tanker that had been transporting 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 organizations,” Bondi wrote.
The Venezuelan government has accused Washington of “blatant theft,” Reuters reported. Meanwhile, Iran's embassy in Caracas has condemned the act, calling it a “grave violation of international laws,” the report added.
The seizure marks the first capture of a Venezuelan oil cargo since US sanctions took effect in 2019, and the Trump administration’s first known move against a Venezuela-linked tanker.
"US forces seized a sanctioned oil tanker off the coast of Venezuela. This marks a serious escalation of tension," ANZ Bank's senior commodity strategist Daniel Hynes said.
The very large crude carrier (VLCC) left Venezuela’s José oil terminal between 4-5 December with 1.8 million bbl of crude. Prior to its seizure, it transferred around 200,000 bbls near Curaçao to the Panama-flagged Neptune 6 bound for Cuba, according to Reuters.
Venezuela’s failure last year to deliver on its pledge to hold fair presidential elections has further strained ties between the two oil-producing nations, as US President Donald Trump continues to press his counterpart Nicolás Maduro to step down.
By Aparupa Mazumder
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