US Seizes Russian-Flagged Oil Tanker Linked to Venezuela
Speakers
Simon Casey
— Bloomberg Reporter
Summary
US forces seized a Russian-flagged tanker linked to Venezuela that was sailing between Iceland and Scotland. Bloomberg's Simon Casey said the vessel is part of a sanctioned shadow fleet and that Venezuela's oil output is too small to have significant market impact. He said oil prices could fall further this year regardless of the seizure.
- US forces seized a Russia-flagged tanker linked to Venezuela in the North Atlantic.
- The vessel is part of a shadow fleet used to evade sanctions and had been chased from Venezuela.
- The ship is empty, while another seized sanctioned tanker full of oil sits off Texas.
- Venezuela produces less than 1 million barrels per day versus global consumption above 100 million.
- Simon Casey sees no significant oil-market impact and says consumers may not notice.
- He thinks oil prices could fall further this year regardless of Venezuela.
- He is skeptical of a rapid 700,000 bpd Venezuelan output increase, saying major recovery is years away.
Ideas
Oil prices could head lower this year
Oil prices have already declined over the past 12 months, and Simon Casey expects them to head even lower this year regardless of Venezuela. Venezuela produces less than 1 million barrels per day in a global market consuming over 100 million barrels per day, so the tanker seizure and Venezuelan supply issues are not significant enough to support prices.
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Speakers: Simon Casey · Tickers: WTI