US–Venezuela showdown threatens to jolt gas prices — what could spark a surge
President Donald Trump announced Wednesday that the U.S. had seized an oil tanker off the coast of Venezuela, elevating the likelihood of a disruption that could raise costs within the...
By Fox News · Fox News
President Donald Trump announced Wednesday that the U.S. had seized an oil tanker off the coast of Venezuela, elevating the likelihood of a disruption that could raise costs within the oil and energy sector for Americans — under certain conditions. The seizure of the oil tanker signifies a major escalation with Venezuela and exerts even more pressure on Caracas, which already is subjected to U.S. oil sanctions. Meanwhile, the president has discussed for weeks that he's considering conducting land strikes in Venezuela — on top of his strikes against alleged drug boats in Latin American waters — as the next step in his campaign against the flow of drugs into the U.S. Whether U.S. gas and energy prices increase will depend on the type of steps taken as part of a military intervention against Venezuela, including if energy facilities are targeted and if oil from Venezuela becomes more scarce, according to Kevin Book, managing director of the research firm ClearView Energy Partners. US DEPLOYS FIGHTER JETS TO GULF OF VENEZUELA IN CLOSEST KNOWN APPROACH YET, AMID RISING TENSION "In the event of regime change of substantial turmoil within Venezuela, you could see disruption to the related and supporting industries, everything from power to ports, that is an essential part of getting oil onto the market and from Venezuela," Book said. Venezuela currently produces roughly 1 million barrels of oil per day, accounting for roughly 1% of global production — and if that oil is taken off of the market, the price of oil for the U.S. will increase, Book said. In addition to a decrease in oil production, U.S. prices could also go up because of the type of oil that comes from Venezuela, according to Book. That’s because oil refineries in the U.S. Gulf Coast are dependent on heavy sour oil, which comes from countries like Venezuela, Mexico and Canada. "Venezuela currently produces more than a million barrels per day, approximately one percent of global supply," Book said. "But more im…