Trump Blockades Venezuelan Tankers, Oil Immediately Bounces
US President Donald Trump said he was ordering a total blockade of all sanctioned oil tankers entering and leaving Venezuela. This move intensifies pressure on the government of Nicolas Maduro, amid reports of increased US military activity in the region and threats of more aggressive action.
Trump also declared the Maduro regime a "foreign terrorist organization" and accused Caracas of using oil to carry out crimes such as drug trafficking, human trafficking, and fraud. This policy came after the US previously seized a sanctioned tanker off the coast of Venezuela, prompting several ships bound for Venezuela to turn back.
The oil market reacted immediately. After falling in recent sessions, WTI rebounded above $56 as traders calculated the risk of supply disruptions if the blockade were truly effective and shipments were further disrupted. This means that while the oil market's overall trend is being weighed down by oversupply concerns, Venezuelan headlines could trigger a short-term rebound.
In Venezuela, this pressure is particularly severe because its economy is heavily dependent on dollars for oil sales. The Maduro government views the US action as "merely" an attempt to exploit oil reserves, while the state oil company PDVSA continues to collaborate with several international partners—including US companies—through a licensing scheme that allows some operations to continue. (asd)
Source: Newsmaker.id
