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The US seized an oil tanker near the coast Venezuelathree officials told Reuters on Wednesday, a move that has boosted oil prices and is likely to further inflame tensions between Washington and Caracas.
American president Donald Trump he ordered a massive US military buildup in the region, including an aircraft carrier, fighter jets and tens of thousands of troops.
The officials, who spoke on condition of anonymity, said the operation was led by the US Coast Guard. They did not specify the name of the tanker, the flag of which country it was flying, or where exactly the ban took place.
Oil futures rose on news of the seizure, after trading in negative territory earlier in the day. Global Brent crude futures LCOc1 were trading at $62.35 a barrel, up 41 cents, at 2:32 p.m. ET, while U.S. West Texas Intermediate CLc1 futures were up 21 cents at $58.46 a barrel.
The Coast Guard referred questions to the White House, which did not immediately respond to a request for comment. The Venezuelan government did not immediately respond to a request for comment.
Venezuela exported more than 900,000 barrels per day (bpd) of oil last month, the third-highest monthly average so far this year, as state-run PDVSA imported more oil to dilute its extra-heavy oil output. Even amid mounting pressure on Venezuelan President Nicolas Maduro, Washington has not interfered in the country’s oil flows.
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Oil exports are Venezuela’s main source of income. The country has had to significantly discount its crude oil from its main customer, China, due to growing competition from sanctioned oil from Russia and Iran.
Venezuelan President Nicolas Maduro has claimed that the US military buildup near Venezuela is aimed at ousting him from power and taking control of the OPEC country’s vast oil reserves.
Trump has repeatedly mentioned the possibility of US military intervention in Venezuela.
