Oil prices were roughly flat during Tuesday’s Asian session as the United States continued to pursue a tanker near Venezuela.
Brent crude prices were unchanged at US$62.07 per barrel by 2:25 pm AEDT (3:25 am GMT). West Texas Intermediate slipped 0.07% to $57.97.
The U.S. Coast Guard is still pursuing the sanctioned oil tanker Bella 1 in international waters near Venezuela, U.S. President Donald Trump said, more than a day after it began chasing the vessel.
Bella 1 was empty when it approached Venezuela over the weekend. Trump called for a blockade of sanctioned oil tankers entering or exiting Venezuela last week, and the U.S. has seized two other tankers in the area this month.
“While we expect this threat to weigh on oil exports from the country, we do not expect a complete halt — about 40% of the dark fleet loading crude oil from Venezuela is under U.S. sanctions, and the U.S. continues to import from the country,” UBS’ chief investment office wrote after the blockade was announced.
According to Trump, the U.S. is interested in keeping the oil it seizes. “Maybe we’ll sell it, maybe we’ll keep it, maybe we’ll use it in the strategic reserve,” he said.
Ukrainian President Volodymyr Zelenskyy said today that the U.S.’ revised proposals for an end to Russia’s invasion would meet many of Ukraine’s demands, though Russia has said the changes will not improve the chances of reaching a deal. The U.S. separately held talks with Ukrainian and Russian officials over the weekend.
Meanwhile, Russia has escalated its strikes on port infrastructure in Ukraine’s southern Odesa region. Ukraine has hit an oil terminal, a pipeline, two jet fighters, and two ships in a series of strikes on Russian territory.
Shell and Ineos Energy reported a new oil discovery at a deepwater exploration well in the Gulf of Mexico. This is Ineos’ first successful well in the Gulf, while Shell reported 20-year production highs in the region last quarter.
The companies are working to determine the size of the find, according to Ineos. Shell owns a 79% working interest in the well, while Ineos owns 21%.
