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U.S. Tightens Grip on Venezuelan Oil, Seizes Tankers and Courts Traders as Prices Edge Higher

Indian refiners signal interest if non‑U.S. purchases are cleared.

Overview

  • Washington says it will control Venezuela’s oil sales and revenues indefinitely and has begun marketing stored crude, with access to 30–50 million barrels valued at about $2 billion.
  • U.S. authorities seized two Venezuela‑linked tankers in the Atlantic this week and invited Vitol and Trafigura to White House talks on coordinating Venezuelan oil sales.
  • Oil prices extended gains after a larger‑than‑expected U.S. crude inventory draw and uncertainty over Venezuela, though expectations for a 2026 surplus are seen capping sustained rallies.
  • Trade flows are shifting toward U.S. buyers, with cargoes likely redirected from China and some Chinese independent refiners weighing Iranian barrels to replace Venezuelan supply.
  • Reliance Industries said it would consider buying Venezuelan crude if allowed for non‑U.S. buyers, as analysts warn that any durable production recovery in Venezuela will take years and major investment.