A PYMNTS Company

Baltimore Sues Major U.S. Shale Oil Producers Over Alleged Price-Fixing Conspiracy

By  |  August 26, 2024
price-fixing

Baltimore has launched a legal battle against several major U.S. shale oil producers, accusing them of conspiring to limit production and artificially inflating prices for gasoline, diesel fuel, and heating oil. According to Reuters, the lawsuit targets prominent industry players including Hess Corporation, Permian Resources, Chesapeake Energy, Occidental Petroleum, Diamondback Energy, and Pioneer Natural Resources, which was recently acquired by Exxon Mobil.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The lawsuit, filed in New Mexico federal court on Saturday, is a proposed class action that marks the first instance of a state or municipality joining a broader consolidated litigation. This larger legal effort, which involves over a dozen similar lawsuits, was brought together by a panel of U.S. judges earlier this month.

    Per Reuters, Baltimore’s complaint, which was prepared by the national plaintiffs firm Berger Montague and other legal teams, alleges that the companies engaged in a coordinated scheme starting in 2017. This alleged conspiracy, the city argues, violated antitrust laws by driving up the price of crude oil and light petroleum products.

    The city of Baltimore, a key seaport and Maryland’s largest city, claims it suffered financial losses due to the higher prices it had to pay for petroleum products purchased from wholesale suppliers during the period of the alleged conspiracy. The lawsuit argues that these inflated prices negatively impacted the city’s budget and its residents.

    Despite the seriousness of the allegations, Hess, Permian Resources, Chesapeake Energy, and other named defendants have not yet responded to requests for comment. The companies have previously argued that the complaints lack sufficient grounds under antitrust law and should be dismissed.

    Similarly, the city of Baltimore and its legal representatives have yet to provide a public statement regarding the lawsuit.

    Source: Reuters