No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeTopicsLatin AmericaHow does Trump’s blockade affect Venezuela’s oil?

How does Trump’s blockade affect Venezuela’s oil?

A U.S. blockade on oil tankers entering or leaving Venezuela would likely trigger a steep drop in exports, with experts estimating reductions of up to about 50%.

Trump ordered what he called a “total and complete” blockade of sanctioned tankers, escalating pressure on Nicolás Maduro’s government, which the United States does not recognize. The U.S. also deployed the aircraft carrier USS Gerald Ford to the Caribbean with additional ships, fighter jets, and troops, framing the moves as counternarcotics operations. Maduro argues the real goal is to force him from power.

Trump accused Maduro of using oil revenue to finance “narco-terrorism,” human trafficking, murder, and kidnapping. Venezuela describes the move as a “naval military blockade” aimed at stealing the country’s wealth.

According to an analysis of U.S. sanctions data (OFAC) and IMO data, about 600 of roughly 1,400 U.S.-sanctioned vessels worldwide are oil tankers that could be affected. Of those, 23 are tied directly to Venezuela-specific sanctions programs: 11 sanctioned during Trump’s first term, six during Biden’s term, and six added last week amid the current crisis.

Even tankers that are not sanctioned may still transport Venezuelan crude, but the increased risk of seizures would likely force Venezuela to sell at deeper discounts. Before Trump’s order, those discounts were around 35%, according to economist Francisco Monaldi.

PDVSA said exports are continuing normally and that ships are sailing with operational guarantees. But U.S. forces seized a tanker on December 10 carrying crude from Venezuela. The ship, Skipper, was described as a “ghost vessel” using a false flag, typical of black-market operations.

Venezuela produces around 1 million barrels per day, most for export. Monaldi estimates exports could fall by roughly half depending on how often sanctioned tankers are intercepted, calling it a dramatic decline. A parliamentary source told AFP that PDVSA had not been able to load vessels after the Skipper seizure and warned storage capacity could max out in about 15 days, potentially forcing production shut-ins. Monaldi estimates production could drop by roughly 400,000 barrels per day.

Oil prices rose after the announcement. Venezuelan crude was priced at $47.51 per barrel in November, its lowest level in nearly two years, according to OPEC. On geopolitics and companies: experts said the order has not, so far, affected Chevron shipments to the U.S. One analyst noted Chevron’s July license allows it to take about 50% of what joint ventures with PDVSA produce, though a Capital Economics report flagged significant uncertainty.

China is the biggest exposure: about 80% of Venezuelan crude goes to China via these tankers. Economist Asdrúbal Oliveros estimated that reduced shipments to Asia could jeopardize about $8.5 billion a year in Venezuelan income. Another analyst argued the hit may be short-lived because China can switch to its own ships as a workaround.

Trending Now

Last Cuban doctors leave Honduras amid Trump pressure

The last contingent of Cuban doctors still in Honduras departed this Thursday after the agreement under which they had operated in the country for...

U.S. Embassy in Costa Rica Starts WhatsApp Channel

The U.S. Embassy in San José has established a dedicated WhatsApp channel to provide U.S. citizens with timely safety and security information while in...

Heavy Military Security Surrounds El Mencho Burial in Mexico

Soldiers, National Guard troops and police formed rings of security around a funeral home and cemetery as the body of alleged Jalisco New Generation...

Nosara Landowners Build Costa Rica’s First Voluntary Biological Corridor

Private landowners in Nosara have begun to register ecological easements that form the country’s first biological corridor created solely through voluntary conservation agreements. The...

Burger King Drops Mike Blanco Ad Over Harassment Allegations in Costa Rica

Burger King Costa Rica has cut all professional links with social media influencer Mike Blanco after reports emerged of alleged inappropriate contact with minors....

Chaves and Fernández Predict Dollar Will Stay Low in Costa Rica

President Rodrigo Chaves and President-elect Laura Fernández say the U.S. dollar will stay at low levels against the colón. Both leaders point to steady...
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Travel

Latest News from Costa Rica