US Senate passes bill to prevent OPEC+ from fixing oil prices

The US Senate Judiciary Committee approved a antitrust bill aimed at preventing the Organization of the Petroleum Exporting Countries (OPEC) and its allies, or OPEC+, from orchestrating supply constraints to raise crude prices globally.

The Non-Aligned Oil Producers and Exporters (NOPEC) bill is sponsored by both Republicans and Democrats in the US Senate.

The bill needs to be approved by the US Senate and House of Representatives and signed into law by President Joe Biden. US Senate Judiciary Committee passed the bill with 17 votes in favor and 4 against.

If approved by both houses of Congress, NOPEC will allow the US Attorney General to sue OPEC or its member countries in federal court if he finds that there is a settlement act to “blown” oil prices. .

OPEC+ partner countries could also be sued. As such, NOPEC would change existing antitrust laws in the United States, thereby revoking judicial immunity that has long protected OPEC as well as national oil companies belonging to this organization from lawsuits.

Saudi Arabia and other OPEC oil-producing countries have rejected a US request to increase production to lower oil prices, amid a recovery in global oil demand after the COVID-19 pandemic and the conflict. The conflict in Ukraine caused oil prices skyrocketed.

However, during the meeting on May 5, OPEC + agreed to maintain current plans for an increase in oil production, thereby increasing at a moderate rate of 432,000 bpd in June 2022.