On December 10, the U.S. registered a large crude carrier called Skipper. The event has reverberated throughout the maritime and energy industries. This action marks a pivotal moment in the ongoing scrutiny over international oil transport, particularly in regions like Venezuela, which has been under U.S. sanctions.
On November 14, the satellite imagery showed the Skipper still berthed off Port Jose, Venezuela. At the same time it was surrounded by a large number of other vessels. Photo credit — Vanguard, a British maritime risk management company that focuses on monitoring shipping movements. In the Vanguard article, U.S. authorities apparently identified the Skipper in order to intercept illegal shipments of Venezuelan oil. It is in hopes of countering the country’s long-standing economic crises and international sanctions.
The Skipper, considered a very large crude carrier (VLCC). These ships are able to move enormous volumes of oil very quickly and in very long length. These vessels are the unsung workhorses of the global oil supply chain. Yet at the same time their movements and ownership are under a huge microscope due to their importance. The seizure of such a comically large vessel raises new and important questions about the future of the oil market. It further recommends taking additional measures to hamper maritime operations in sanctioned jurisdictions.
Vandana Hari, founder of Vanda Insights, puts a fine point on that. Darkow thinks the seizure might be a signal that the U.S. is increasing its enforcement efforts against Venezuelan oil exports as part of its sanctions. Hari is adamant that we have to watch these trends carefully. I’m not saying they won’t affect oil prices and supply alternatives across Asia and the world.
The impact of this seizure goes further than the confiscation of the ship. Industry experts suggest that this development could lead to increased volatility in oil markets, particularly for countries reliant on Venezuelan crude oil. As global geopolitical conditions become more controversial and fluid, stakeholders need to stay focused on changing supply forces and their effects on market pricing.