Oil tankers are diverting from Venezuela due to President Trump’s military campaign, causing discounts on Venezuelan crude and potential well shut-downs for lack of storage space, threatening an $8-billion market. Trump escalated rhetoric, demanding assets returned. Venezuela has assigned Navy escorts amid threats, but as many as 75 tankers idle off the coast.

Venezuela’s oil production is at 860,000 bpd, down from over 1 million in October. About 11 million barrels of oil are stuck at sea, with storage hubs filling up within 10 days, prompting production decline. Tankers employ tactics to avoid sanctions. Venezuela could lose 500,000 bpd in production due to sanctions.

Analysts believe Trump’s campaign against Venezuela could backfire, pushing Venezuela closer to China and Russia, fueling market volatility. Some argue that the U.S. won’t suffer adverse effects from a blockade, but others warn of disruptions for Gulf Coast refineries. The $8-billion market disruption may be part of a longer oil market disruption show.

Read more at Yahoo Finance: Trump’s Venezuela Campaign Disrupts an $8 Billion Oil Trade