The United States has intercepted another oil tanker off the coast of Venezuela in international waters, prompting accusations of “international piracy” from the South American nation. This incident, confirmed by US Homeland Security Secretary Kristi Noem on Sunday, follows President Donald Trump’s recent announcement of a blockade on all sanctioned oil tankers entering and leaving Venezuela.
Secretary Noem revealed that the US Coast Guard seized a tanker last docked in Venezuela, marking the second such action in recent weeks. This development occurs amid a significant US military presence in the region. “The United States will continue to pursue the illicit movement of sanctioned oil that is used to fund narco-terrorism in the region,” Noem stated on social media. “We will find you, and we will stop you.”
Venezuelan Response and International Reactions
In response, the Venezuelan government issued a statement condemning the US actions as “criminal” and vowed 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,” the statement declared.
British maritime risk management company Vanguard identified the vessel as the Panama-flagged Centuries, intercepted east of Barbados. Jeremy Paner, a partner at Washington DC law firm Hughes Hubbard and a former Office of Foreign Assets Control investigator, noted that the vessel had not been 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.”
Background and Context
The action was reportedly a “consented boarding,” with the tanker voluntarily stopping to allow US forces to board, according to an anonymous US official. This follows President Trump’s directive for a “TOTAL AND COMPLETE BLOCKADE OF ALL SANCTIONED OIL TANKERS going into, and out of, Venezuela.” Since the initial seizure of a sanctioned oil tanker last week, an effective embargo has been in place, with vessels carrying millions of barrels of oil remaining in Venezuelan waters to avoid seizure.
Since the US imposed energy sanctions on Venezuela in 2019, traders and refiners have resorted to using a “shadow fleet” of tankers that disguise their location, as well as vessels sanctioned for transporting Iranian or Russian oil. The Centuries, which loaded in Venezuela under the false name “Crag,” was carrying approximately 1.8 million barrels of Venezuelan Merey crude oil destined for China, according to internal documents from state oil company PDVSA.
Market Implications and Future Outlook
China, the largest buyer of Venezuelan crude, imports about 4% of its oil from Venezuela, with shipments in December projected to exceed 600,000 barrels per day. Currently, the oil market remains well-supplied, with millions of barrels waiting to offload off the coast of China. However, if the embargo persists, oil prices could 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 data from TankerTrackers.com.
The ongoing tension between the US and Venezuela over oil shipments highlights the complex geopolitical dynamics in the region. As both nations continue to assert their positions, the international community watches closely, anticipating potential shifts in global oil markets and diplomatic relations.
