US Pursuit of Oil Tanker Intensifies Venezuela Blockade

Geopolitical Impact on Oil Market - The Trump administration's blockade of sanctioned oil tankers is increasing pressure on Venezuela's government [1] - The administration is now targeting unsanctioned vessels to maximize pressure on companies exporting Venezuelan crude [2][3] - Chevron has a waiver allowing some exports, mitigating the full impact of the blockade [3] Oil Price and Supply/Demand Dynamics - Venezuela's oil production is less than 1% of global demand [4] - A complete halt of Venezuelan exports could cause a temporary price increase due to market sentiment [4] - The global oil market faces a large oversupply going into 2026 [5] - Demand growth is not keeping pace with increasing supply from OPEC+, the US, and other countries [5][6] - Despite potential short-term price spikes, analysts predict a downward trend due to the oversupply [6]