Oil Prices Climb as US Seizure of Venezuelan Tanker Stokes Supply Fears
The move adds fresh geopolitical risk to the market, compounded by a recent drop in U.S. crude inventories, pushing key benchmarks higher.
Global oil prices advanced on Wednesday after the United States seized a sanctioned oil tanker off the coast of Venezuela, inflaming geopolitical tensions and raising the premium for supply risk. The news, coupled with a reported decline in U.S. crude stockpiles, added to a tightening supply narrative, lifting benchmark futures.
West Texas Intermediate (WTI) crude, the U.S. benchmark, gained 0.4% to trade at $58.46 per barrel, while Brent crude, the international standard, rose 0.4% to $62.21.
Driving the gains was the confirmation of a U.S. operation to seize the crude oil tanker "The Skipper." U.S. officials stated the vessel was targeted for its role in an "illicit oil shipping network" designed to transport sanctioned oil from Venezuela and Iran. In a statement, U.S. Attorney General Pam Bondi confirmed a seizure warrant was executed against the tanker, which CBS News reported was a multi-agency operation involving the FBI and U.S. Coast Guard. President Donald Trump later described the vessel as "the largest one ever seized, actually."
The Venezuelan government swiftly condemned the action. President Nicolás Maduro's administration decried the move as "blatant theft" and an act of "international piracy," according to Al Jazeera. The sharp rhetoric underscores the potential for further escalation and disruption to energy flows in the region.
Adding to the bullish sentiment, the U.S. Energy Information Administration (EIA) reported a drop in domestic crude inventories. For the week ending December 5, U.S. commercial crude oil stockpiles fell by 1.8 million barrels, according to the agency's latest weekly report. While the draw provides fundamental support for prices, it was slightly smaller than the 2.3 million barrel decline that analysts had forecast, a factor that may have tempered the rally.
Even with the smaller-than-expected draw, the EIA noted that total U.S. crude inventories are running approximately 4% below the five-year average for this time of year, signaling a tighter domestic market heading into the winter.
While the seizure of a single tanker does not materially alter the global supply-demand balance, the event introduces a significant and unpredictable risk factor for the market. Traders will be closely watching for any retaliatory measures from Venezuela or its allies, as heightened military presence and confrontation in key shipping lanes could have a cascading effect on insurance costs, transit times, and ultimately, the price of crude oil worldwide.