On December 10, the United States announced the seizure of an enormous crude carrier named the Skipper. Even more encouraging is the soaring surge after this operation, perhaps the biggest development in recent weeks. This transformative trend has caused alarm bells to ring in the international oil market, especially now, given the complexity of shifting supply chain imperatives and geopolitical ramifications. The Skipper, a ship typically deployed to carry massive loads of fresh water, has allegedly been taken hostage. Tensions in the domain of maritime operations have been quickly rising.
On November 14, a commercial satellite image detected the Skipper’s presence anchored off Port Jose, Venezuela. This photo has brought international focus to the vessel’s actions leading up to its seizure. The source of the satellite imagery is not indicated. It has drawn heightened scrutiny around the Skipper’s operations and its ramifications for increased vessel transportation of oil to the region.
Vanguard, a British maritime risk mitigation collective, confirmed that U.S. forces have captured the Skipper. This incident is a vivid reminder that geopolitics are never far from the surface, especially in oil transportation. The seizure highlights the U.S. government’s active role in monitoring and regulating maritime activities tied to oil shipments, especially those associated with Venezuela—a country facing international sanctions and scrutiny over its oil exports.
Vandana Hari, founder of Vanda Insights, discussed what she believes will be the long-reaching consequences of this seizure. Her firm is the world’s only global energy market intelligence headquartered in Singapore. She noted that even small incidents like these have the potential to dramatically alter oil prices and supply chains. This is acutely felt in countries acutely dependent on Venezuelan oil. Obviously, the seizure will have a chilling effect on other shipping companies operating in the region. We urge them to look beyond the money and weigh risks of transporting Venezuelan crude oil.
The fallout from this seizure reaches far beyond near-term shipping disruptions. Analysts say that this latest move is the start of a deeper strategic pivot by the U.S. Their goal is to increase leverage over oil exports from countries where we have currently imposed sanctions. This action has a tangible effect on the Skipper. Second, it might disincentivize other vessels from doing similar things, which might impact swaths of the oil market.