US: OPEC might become subject to antitrust laws

Congress has revived a bill dating back to over a decade ago that would punish oil cartels that collude on production under the Sherman Act. In the past, courts have decided to give sovereign governments immunity under the Act. The No Oil Producing and Exporting Cartels Act (H.R. 5904 also known as NOPEC) would make OPEC subject to antitrust laws by removing a state immunity shield created by judicial precedent.

Saudi Arabia (KSA) and Russia signaled their intention to increase production in a turnabout last week, reported Seeking Alpha. KSA’s decision is clearly part of the bilateral negotiations regarding Iran, though a factor could be KSA is reportedly worried about facing American antitrust laws, if a Congressional bill is passed and signed into law by the president.

“Without legislation like NOPEC, we are complicit in the cartel’s price fixing and anticompetitive behavior. Moreover, we embolden malicious actors like Iran, who rely on oil revenue to pursue foreign policies antithetical to US interests.” wrote Ariel Cohen for Fortune magazine.

Full Content: Seeking Alpha & Forbes

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