US Military Actions Disrupt Venezuela’s $8 Billion Oil Trade
According to the Economic Desk of Webangah News Agency, US military threats against Venezuela’s oil trade intensified after the seizure of a tanker two weeks ago. President Donald Trump escalated rhetoric, threatening to blockade Venezuelan oil tankers and demanding the return of “oil, land, and other assets previously stolen from us (the US),” likely referencing oil assets nationalized by Hugo Chávez’s government in the 1990s. On social media, Trump warned that the US military presence off Venezuela’s coast “will only grow larger, and the shock they experience will be unlike anything they’ve seen before.”
In response, Venezuela assigned naval escorts to tankers, with several vessels departing hours after Trump’s latest threats. The New York Times reported, citing ship-tracking data and unnamed sources, that multiple ships carrying urea, petroleum coke, and other oil products were dispatched to Venezuela.
The Wall Street Journal noted 75 tankers anchored off Venezuela’s coast, with TankerTrackers.com data showing only half are on US sanctions lists. Some diverted from their original routes to avoid seizure. A Venezuelan economist told the Journal that suppressing sanctioned tankers could cost Venezuela $8 billion in oil revenue.
Sanctioned tankers account for up to 70% of Venezuela’s oil trade, with approximately 900 vessels transporting crude abroad, primarily to Asia. The International Energy Agency estimated Venezuela’s oil production at 860,000 barrels per day last month, down from 1.01 million in October and below September’s 1 million barrels—the highest since February 2019. Production faces further decline due to US sanctions and storage shortages.
Energy analyst Cyril Widdershoven argued that Trump’s campaign against Venezuela could backfire, pushing Venezuela closer to China and Russia while destabilizing global supply chains and market volatility. OilPrice.com reported analysts claiming US Gulf Coast refineries have largely halted Venezuelan crude imports, insulating them from supply disruptions. However, firms like Kepler warn that Venezuela’s oil trade disruption could still affect regional refineries, with the $8 billion market disruption potentially signaling broader oil market instability.
