Durrant Pate/Contributor

Oil prices are rising after the US seized an oil tanker off the coast of Venezuela, adding to concerns about supplies.

Brent crude futures rose 27 cents, or 0.44%, to close at US$62.21 a barrel yesterday, while US West Texas Intermediate crude futures rose 21 cents, or 0.36%, to settle at US$58.46. The seizure, led by the US Coast Guard has increased supply concerns in a market that was already worried about movements of Venezuelan, Iranian and Russian barrels, explained Rory Johnston, founder of the Commodity Context newsletter.

He noted that it did not immediately change the fundamental supply-demand balance. Oil prices will likely react more sharply if the seizure is followed up by more such actions, declared Ed Hayden-Briffett, oil analyst at Onyx Capital Group. This seizure of the oil tanker marks a sharp escalation in Washington’s confrontation with Venezuelan President Nicolás Maduro’s government.

Footage released by the US government showed armed soldiers boarding the vessel, which Attorney General, Pam Bondi said was used to transport sanctioned oil from Venezuela and Iran. Caracas swiftly denounced the action, calling it an act of “international piracy”. Earlier, President Nicolás Maduro declared that Venezuela would never become an “oil colony”.

Russia banking Caracas

This morning the Kremlin announced that Russian President, Vladimir Putin had spoken with Maduro and reassured him of Moscow’s support “in the face of growing external pressure”. Venezuela—home to some of the world’s largest proven oil reserves—has, in turn, accused Washington of seeking to steal its resources.

Attorney General Bondi reported that the tanker has been sanctioned by the US for multiple years “due to its involvement in an illicit oil shipping network supporting foreign terrorist organizations,” including Venezuela and Iran. Bondi posted a video on X showing armed personnel rappelling on to the ship from a helicopter, then moving on deck with guns drawn.

She said the FBI, Homeland Security Investigations and the US Coast Guard, conducted the seizure “with support from the Department of War.” The US Treasury Department said at the time the network was operated by a Switzerland-based Ukrainian oil trader.

The US military flew two fighter jets over the Gulf of Venezuela on Tuesday in what appeared to be the closest approach by US combat aircraft to Venezuelan airspace since the administration’s pressure campaign began. A statement from Guyana’s Maritime Administration Department on yesterday said the Skipper was “falsely flying the Guyana Flag as it is not registered in Guyana.”

The Skipper’s port of call log shows it called in Iran, Iraq, and the UAE from June 30 to July 9 this year. Its most recent stop, according to MarineTraffic, was at Soroosh port in Iran on July 9. MarineTraffic shows it was last near Iran in mid-September before arriving off the coast of Guyana at the end of October and making minimal further movement since then.

MarineTraffic lists the beneficial owner and operator as Nigeria-based Thomarose Global Ventures Ltd and it lists the registered owner as Marshall Islands-based Triton Navigation Corp.