The US is currently searching for a third oil tanker near Venezuela, as President Donald Trump strengthens an oil blockade against Nicolás Maduro's government, according to a US official.
The Bella 1, a Panamanian-flagged tanker that is under US sanctions, was reportedly heading to Venezuela to load oil, according to an anonymous source. This action follows the boarding of the Centuries supertanker on Saturday and the Skipper on December 10.
A US official mentioned that the tanker being pursued is operating under a false flag and is subject to a judicial seizure order. Earlier reports suggested that the Bella 1 had already been boarded.
Trump is increasing pressure on Maduro by cutting off the government’s primary source of income. Experts say that if Venezuela cannot export its oil, its storage tanks will overflow, forcing the state-owned Petróleos de Venezuela SA (PDVSA) to shut down oil wells.
Trump has previously labeled Maduro’s government as a foreign terrorist organization, accusing it of drug trafficking.
The boarding of the Centuries was significant because the ship was not listed on the public US sanctions list at the time. The Centuries was flying the Panamanian flag, with a Chinese company listed as the owner of the oil, as reported by Bloomberg.
White House spokeswoman Anna Kelly confirmed that the tanker was carrying sanctioned PDVSA oil.
Venezuelan Vice President and Oil Minister Delcy Rodriguez condemned the "theft and kidnapping" of the Centuries on Saturday, calling it "a serious act of piracy" by the US government.
Rodriguez mentioned that the country’s oil production had reached the government-set target of 1.2 million barrels per day this weekend.
However, the blockade seems to be putting pressure on Venezuela's oil storage capabilities.
“PDVSA is filling up its storage tanks and vessels typically used for short internal trips. It's only a matter of days before production might start shutting down,” said Evanan Romero, an oil advisor to Venezuelan opposition leader Maria Corina Machado.
Romero, a Houston-based expert in Venezuela’s oil industry, warned that a production collapse could lead to widespread unrest as the currency falls and food becomes harder to purchase.
This escalation is likely to further reduce exports from Venezuela and could limit production by restricting the supplies of lighter diluent, which is needed for transporting crude oil.
“If the initial seizure caught attention in Caracas, later interceptions could significantly reduce exports,” said Kevin Book, managing director of ClearView Energy Partners in Washington. “Even before the blockade, the US efforts may have already decreased export volumes by discouraging shipments and affected heavy oil production by blocking tankers carrying diluent.”
Schreiner Parker, a partner and head of emerging markets at Rystad Energy, noted that the US blockade will likely deter many in the oil shipping industry from doing business with Venezuela.
“Oil tankers today are not like those in the past, and due to advanced radar and satellite technology, simply shutting off a transponder or using a false flag won't be enough to avoid detection,” he explained. “This means the Trump blockade could effectively lead to a complete halt of Venezuela’s crude exports.”
US government officials have downplayed any potential effects on global oil prices.
“It's not a significant amount of oil compared to global supply,” said Kevin Hassett, head of the White House National Economic Council, on CBS's Face the Nation regarding Saturday’s ship boarding. “So I don't think there’s any need for concern in the US that prices will rise due to these ship seizures.”