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The US military seized another Venezuela-linked tanker known as Veronica in a pre-dawn action on Thursday. Monochrome video showed a helicopter flying next to the tanker and US troops boarding the vessel. The seizure marks the sixth vessel targeted in recent weeks as part of the effort by the Trump administration to control the Venezuelan oil industryUS military seizes Venezuela oil tanker under Trump sanctions Continue reading… More
Hopes that tougher sanctions and lower oil prices could derail Putin’s war effort underestimate how far the Kremlin has rewired its economyPacing inside the Kremlin last weekend, as news feeds churned out minute-by-minute reports of Donald’s Trump’s Venezuelan coup, Vladimir Putin may have been wondering what it would mean for the price of oil.Crude oil has lubricated the Russian economy for decades – far more than gas exports to Europe – and so the threat of falling oil prices, prompted by US plans for control of Venezuela’s rigs, will have been a source of concern. Continue reading… More
Deal indicates Venezuelan government is responding to Trump’s demand that they open up to US oil companies or risk more military interventionDonald Trump has said Venezuela will be “turning over” $2bn worth of Venezuelan crude to the United States, a flagship negotiation that would divert supplies from China while helping Venezuela avoid deeper oil production cuts.“This Oil will be sold at its Market Price, and that money will be controlled by me, as President of the United States of America, to ensure it is used to benefit the people of Venezuela and the United States!” Trump said in a post online. Continue reading… More
The seizure of Venezuelan leader was induced by the prize of petroleum, but driven by spectacle, geopolitics and domestic politicsIt’s all about oil. That was the reason Nicolás Maduro, the Venezuelan leader illegally abducted by US forces at the weekend, had given for Donald Trump’s fixation with his country. A better way to think about Venezuela is that oil was necessary but not sufficient. The presence of vast reserves made Mr Trump’s interest understandable – if Venezuela’s main export was bananas this would not have happened. But oil alone cannot explain the timing or scale of the move.Venezuelan crude is extra-heavy as well as expensive and slow to bring online; it will not immediately transform US energy systems, nor rescue refineries that have already adapted to years without it. Instead, oil is the “prize” around which other agendas cohere. These include future profits for US firms; modest downward pressure on oil prices; depriving China of a meaningful ally in America’s backyard; putting pressure on Cuba; and US domestic political signalling in Florida. Each gain is small. But collectively Mr Trump could justify a high‑profile, theatrical – and unlawful – intervention even if the economic returns are incremental.Do you have an opinion on the issues raised in this article? If you would like to submit a response of up to 300 words by email to be considered for publication in our letters section, please click here. Continue reading… More
