The United States has seized an oil tanker off the coast of Venezuela in international waters, prompting accusations of “international piracy” from the South American nation. The incident, confirmed by US Homeland Security Secretary Kristi Noem, occurred just days after President Donald Trump announced a blockade on sanctioned oil tankers entering and leaving Venezuela.
Secretary Noem revealed that the US Coast Guard intercepted a tanker last docked in Venezuela, marking the second such seizure in recent weeks. This action coincides with a significant US military presence in the region. “The United States will continue to pursue the illicit movement of sanctioned oil that funds narco-terrorism in the region,” Noem stated on social media. “We will find you, and we will stop you.”
International Response and Legal Implications
The Venezuelan government has condemned the US actions as “criminal” and pledged to address the issue with the United Nations Security Council and other international bodies. “The Bolivarian Republic of Venezuela categorically denounces and rejects the theft and hijacking of another private vessel transporting Venezuelan oil, as well as the enforced disappearance of its crew, perpetrated by United States military personnel in international waters,” read a statement from Caracas.
British maritime risk management company Vanguard identified the vessel as the Panama-flagged Centuries, intercepted east of Barbados in the Caribbean Sea. Legal expert Jeremy Paner, a partner at Washington DC law firm Hughes Hubbard, noted that the vessel was not sanctioned by the US. “The seizure of a vessel that is not sanctioned by the US marks a further increase in Trump’s pressure on Venezuela,” Paner commented. “It also runs counter to Trump’s statement that the US would impose a blockade of all sanctioned oil tankers.”
The Shadow Fleet and Global Oil Market
The US action was described as a “consented boarding,” with the tanker stopping voluntarily to allow US forces to board, according to an anonymous US official. This incident follows Trump’s declaration of “A TOTAL AND COMPLETE BLOCKADE OF ALL SANCTIONED OIL TANKERS going into, and out of, Venezuela.”
Since the initial seizure, Venezuelan crude exports have significantly declined. While many vessels picking up oil in Venezuela are under sanctions, others transporting the country’s oil and crude from Iran and Russia have not been sanctioned. Some companies, such as US-based Chevron, transport Venezuelan oil in their own authorized ships.
Since the US imposed energy sanctions on Venezuela in 2019, traders and refiners buying Venezuelan oil have resorted to a “shadow fleet” of tankers that disguise their location, and to vessels sanctioned for transporting Iranian or Russian oil.
The Centuries, which loaded in Venezuela under the false name “Crag,” is part of this dark fleet. It was carrying approximately 1.8 million barrels of Venezuelan Merey crude oil bound for China, according to internal documents from state oil company PDVSA. China remains the largest buyer of Venezuelan crude, accounting for roughly 4% of its imports, with December shipments expected to average over 600,000 barrels per day.
Future Implications and Market Reactions
Currently, the global oil market is well supplied, with millions of barrels of oil on tankers off the coast of China awaiting offloading. However, if the embargo persists, oil prices may rise. As of this week, more than 70 oil tankers in Venezuelan waters are part of the shadow fleet, with about 38 under US Treasury sanctions, according to TankerTrackers.com.
The ongoing tensions between the US and Venezuela over oil sanctions and tanker seizures highlight the complex geopolitical landscape affecting global energy markets. The situation remains fluid, with potential repercussions for international trade and diplomatic relations.
