US Intercepts Second Oil Tanker Near Venezuela Following Blockade Announcement

The United States has seized a second oil tanker off the coast of Venezuela, marking a significant escalation in its efforts to enforce sanctions against the South American nation. According to three U.S. officials speaking to Reuters, this operation occurred in international waters just days after President Donald Trump announced a “blockade” targeting all sanctioned oil tankers entering or leaving Venezuela.

This latest seizure follows a similar operation last week, indicating a strong U.S. military presence in the region. The officials did not specify the exact location of the operation, but confirmed that the U.S. Coast Guard is leading these efforts. Both the Coast Guard and the Pentagon have referred inquiries to the White House, which has not yet provided a comment. Efforts to reach Venezuela’s oil ministry and state oil company PDVSA for a response were unsuccessful.

Trump’s declaration on March 3, 2024, outlined his intention for a “TOTAL AND COMPLETE BLOCKADE” against sanctioned vessels. Following the first seizure, there has been an effective embargo on oil shipments, with many vessels carrying millions of barrels of oil choosing to remain in Venezuelan waters to avoid potential capture. This strategy has resulted in a significant decline in Venezuelan crude exports.

Venezuela’s oil industry is under intense scrutiny, as many of the vessels involved in transporting oil are sanctioned. However, some ships, particularly those operated by Chevron and other authorized companies, continue to engage in trade. Analysts have noted that China remains the largest buyer of Venezuelan crude, accounting for around 4% of its total imports, with shipments expected to average over 600,000 barrels per day in December.

The ongoing embargo has the potential to disrupt the global oil market significantly. Currently, there are millions of barrels on tankers off the coast of China awaiting offloading. Should the blockade persist, the loss of nearly one million barrels a day could lead to increased oil prices globally.

Since the U.S. imposed energy sanctions on Venezuela in 2019, many traders have turned to a “shadow fleet” of tankers that obscure their locations. Some vessels have also been sanctioned for transporting oil from Iran or Russia, complicating the situation further.

Trump’s campaign against Venezuelan President Nicolas Maduro has included heightened military activity in the region. Reports indicate more than two dozen military strikes on vessels in the Pacific Ocean and Caribbean Sea, resulting in over 100 casualties. Furthermore, Trump has hinted at the possibility of U.S. land strikes within Venezuela, a move that Maduro claims aims to overthrow him and gain control of the country’s vast oil resources, which hold the world’s largest crude reserves.

As the situation continues to evolve, the international community is closely monitoring the implications of U.S. actions on Venezuela’s oil industry and the broader geopolitical landscape.