Oil Prices Rise over Escalating Tensions in Caribbean
Oil prices rose on Monday amid reports that US authorities have begun tracking another oil tanker in international waters off the coast of Venezuela, while ongoing tensions in the Russia-Ukraine war have heightened supply concerns in global markets.
International benchmark Brent crude was trading at $60.75 per barrel, up nearly 1% from the previous close of $60.16. US benchmark West Texas Intermediate (WTI) also increased by about 1% to $57.13, compared to $56.52 in the prior session.
As part of escalating tensions in the Caribbean, US forces tracked another oil tanker sailing in international waters near Venezuela.
US Coast Guard is actively monitoring a vessel belonging to the so-called “dark fleet,” which is believed to be involved in Venezuela’s illicit sanctions-evasion activities according to international media reports.
It was also reported that the tanker is subject to a court-ordered seizure warrant. The operation reportedly targets the Panama-flagged oil tanker Bella 1, which is under sanctions and was heading to Venezuela to load crude oil.
If the tanker is seized, it would mark the third intervention against a tanker in the region since Dec. 10. Venezuela has yet to issue an official statement regarding the latest operation.
US President Donald Trump on Tuesday, Dec. 16, ordered a “total and complete blockade” of all sanctioned oil tankers entering or leaving Venezuela, citing their alleged role in financing “narco-terrorism.”
Although Venezuela’s share of global oil supply remains limited, concerns that these developments could disrupt shipments and cause delays are exerting upward pressure on prices.
Meanwhile, uncertainty surrounding peace efforts related to the Russia-Ukraine war continues to influence market pricing.
Russia’s Defense Ministry said on Sunday that Russian forces had cleared mines laid by Ukraine in the Zaporizhzhia region using unmanned aerial vehicles.
Ukrainian President Volodymyr Zelenskyy, however, said in a video message shared on social media that pressure on Russia must be intensified to bring attacks to an end, adding that negotiations are ongoing in the US. Oil Posts Weekly Loss, Brent Price Falls to $59.60 per Barrel
