US seizes oil tanker amid rising tensions with Venezuela
The operation was conducted by the U.S. Coast Guard and supported by the U.S. Navy, according to a U.S. official who was not authorized to comment publicly and spoke on condition of anonymity. The seizure was carried out under the authority of US law enforcement, the official added.
Venezuela has the world’s largest proven oil reserves and produces approximately 1 million barrels per day. The state-owned oil company, which is excluded from global oil markets due to US sanctions, sells most of its production to refineries in China at a deep discount.
The seizure of the tanker could signal efforts to put more pressure on Maduro by making it harder for Venezuela to export oil that is vital to its economy.
The country’s oil exports often involve a complex network of shady middlemen as sanctions scare off more established traders. Many are shell companies registered in jurisdictions known for secrecy. The receivers deploy “ghost tankers” that hide their location and deliver their valuable cargo in the middle of the ocean before they reach their final destination.
A day earlier, the US military had flown a pair of warplanes over the Gulf of Venezuela, the closest warplanes have come to the South American country’s airspace since the administration’s pressure campaign began.
Venezuelan President Nicolás Maduro speaks to supporters at an event commemorating the Battle of Santa Isabel on Wednesday.Credit: access point
Washington has established the largest military presence in the region in decades and has launched a series of deadly attacks on alleged drug-smuggling boats in the Caribbean Sea and eastern Pacific Ocean.
Trump said ground strikes would come soon but did not provide any details about the location.
Among the concessions the United States made to Maduro during past negotiations was approval for oil giant Chevron to continue pumping and exporting Venezuelan oil. The company’s operations in the South American country have provided Maduro’s government with a financial lifeline.
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During a phone call between the two leaders in November, Trump reportedly offered Maduro and his family a safe exit from Caracas if he immediately gave up power.
But Washington has been reluctant to accept Maduro’s demands, which include legal amnesty and the lifting of US sanctions against him and more than 100 Venezuelan officials.
Oil futures rose following news of the seizure. After trading in negative territory, Brent crude futures rose 27¢, or 0.4 percent, to settle at $62.21 ($93.70) a barrel, while U.S. West Texas Intermediate crude oil futures also rose 0.4 percent to settle at $58.46 a barrel.
AP, Reuters
