U.S. Refineries Depend on Venezuelan Oil Grades

Oil prices jumped about 3% after President Donald Trump threatened to blockade all sanctioned oil tankers traveling in and out of Venezuela, which holds the world’s largest proven oil reserves and exports hundreds of thousands of barrels of crude per day, Max Zahn reported for Good Morning America of ABC News.

Trump recently warned of a “blockade” of all sanctioned oil tankers entering or leaving Venezuela, increasing pressure on President Nicolás Maduro’s government. (Photo: Marathon Petroleum Corporation) 

The threatened blockade could reduce global oil supply and heighten geopolitical uncertainty — factors that may further push up oil prices and squeeze consumers at the pump, analysts told ABC News.

However, they added that the overall impact is likely to remain limited unless the situation escalates significantly, since Venezuela accounts for less than 1% of global oil production and much of its crude is sold through unofficial channels.

Recently, Trump warned of a “blockade” of all sanctioned oil tankers entering or leaving Venezuela, increasing pressure on President Nicolás Maduro’s government, which depends heavily on oil revenue.

“Venezuela is completely surrounded by the largest armada ever assembled in the history of South America,” Trump wrote on social media.

“It will only get bigger, and the shock to them will be like nothing they have ever seen before.”

Maduro responded defiantly, saying Venezuela would continue to trade oil.

“Trade in and out will continue — our oil and all our natural wealth that, by the Constitution and Bolívar’s legacy, belongs to its only legitimate owner: the sovereign people of Venezuela,” he said, according to reporting by Michelle Stoddart, Luis Martinez, Matt Rivers, and Mariam Khan for ABC News.