Oil prices climbed in early Asian trading on Monday as markets reacted to the U.S. intensifying its targeting of oil tankers off the coast of Venezuela, including the seizure of a second oil tanker and the pursuit of a third.
At the time of writing, West Texas Intermediate was up 0.64%, at $56.88 per barrel, while Brent crude was 0.66% higher at $60.87 per barrel. The gains reflect heightened geopolitical risk in oil markets and the fear of further supply being taken offline.
On Saturday, U.S. forces intercepted and seized a second oil tanker in international waters off the coast of Venezuela, part of a broader campaign to disrupt sanctioned oil shipments tied to the Maduro government. U.S. authorities say these actions are aimed at curbing illicit oil flows that finance criminal activity, with Trump having announced a blockade of the country on Tuesday.
Following that second seizure, the U.S. Coast Guard is reportedly in active pursuit of a third tanker, identified by a U.S. official as the Bella 1. The vessel being tracked is alleged to be part of a “dark fleet” evading sanctions and is operating under a false flag with a judicial seizure order in place. If intercepted, this would mark the third such operation in under two weeks.
The recent U.S. actions follow the first seizure on December 10, when U.S. forces boarded the oil tanker Skipper in the Caribbean Sea, part of a classified enforcement initiative. Since then, Washington has expanded sanctions and issued a formal blockade targeting sanctioned oil tankers heading to and from Venezuela. Venezuelan officials have condemned the seizures as “international piracy” and said they will lodge complaints with international bodies.
Venezuelan crude plays a relatively modest role in the overall global oil supply, but any sustained disruption in exports, particularly to major buyers such as China, could add to price volatility if buyers are forced to source barrels elsewhere. The current price response reflects rising geopolitical risk rather than immediate changes in physical crude availability.
By Charles Kennedy for Oilprice.com
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