Extract from ABC News
The US has intercepted two oil tankers in recent days amid growing tensions with Venezuela. (Reuters/DHS)
In short:
US officials say the US Coast Guard is attempting to intercept an oil tanker near Venezuela.
If successful, it would be the third oil tanker seized as Donald Trump continues his campaign on President Nicolas Maduro.
The White House did not immediately respond to a request for comment on Sunday, local time.
US authorities seized the Venezuela oil tanker the Skipper earlier this month.
But one oil trader told Reuters that the seizures may push oil prices slightly higher when Asian trading resumes on Monday.
"We might see prices increasing modestly at the opening, considering market participants could see this as an escalation with more Venezuelan barrels at risk," UBS analyst Giovanni Staunovo said.
Another analyst said the seizures raise geopolitical risks and were likely to raise friction in the shadow fleet of vessels that move oil from sanctioned countries like Venezuela, Russia and Iran.
The seizures could legitimise and encourage Ukraine to continue attacking Russian vessels and possibly encourage Europe to detain Moscow-linked dark fleet vessels as well, said Matias Togni, oil shipping analyst at NextBarrel.
Venezuelan and Iranian oil output is already showing signs of slowing, Mr Togni said, adding that he expected the same to happen with Russia.
Oil from countries under sanctions is likely to be offered at steeper discounts as logistics become more expensive, which could help cap the gains in benchmark oil prices, he said.
Reuters/AP
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