US House Committee Approves Anti-OPEC Bill

Acommittee from the US House of Representatives has approved a bill aimed at making OPEC members liable to US antitrust legislation, Reuters reported, adding the prospects of the bill ending up as law were not certain yet.

The No Oil Producing and Exporting Cartels Act, or NOPEC, as it’s more widely known, would, if passed into law, allows the US attorney general to sue separate members of OPEC or the whole group for collusion.

At the moment, OPEC members separately and together are protected by sovereign immunity.

This is not the first bill aimed at making it possible to target OPEC with antitrust measures. Reuters recalls that bills of this kind have been considered in the house of representatives on multiple occasions during the past two decades. However, none of them has ever reached full house vote and it remains unclear whether this one will.

Chances are it will not, in light of Washington’s close ties with Riyadh, the de factor leader of OPEC. The relationship is equally important for Saudi Arabia, but the threat of lawsuits for collusion will likely lead to a quick reaction.

Donald Trump has in the past, before taking the presidency, spoken in support of such a law. Since his entry into office, however, he has not spoken in favor of a NOPEC bill, instead making a point to note the importance of Saudi Arabia for the US, chiefly because of the huge arm sales deals that Riyadh offers Washington.

source: Financial Tribune