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In its effort to wrest more control over global oil markets from foreign producers, Congress lobbied a bill that would let the United States pursue OPEC for oil price fixing. The bill entitled "Cartels and Petroleum Exports Act" was introduced for the first time in May.
Two Republican senators and two Democrats last week introduced legislation to allow the government to sue OPEC members. antitrust violations, which would be an amendment to the Sherman Anti-trust Act of 1890.
Sherman's anti-trust law changed the American business culture. It was the first legislation promulgated by Congress to limit power concentrations that interfere with trade and reduce economic competition. One of the main provisions of the law outlaws all combinations that restrict trade between states or with foreign nations.
This prohibition applies not only to formal agreements but also to any agreement to fix prices, limit industrial production, share markets or exclude competition. The second part of the law and the key provision that most Americans make makes all attempts to monopolize any part of the trade or commerce in the country illegal. Among the long-standing companies to be charged under the law include the dissolution of AT & T in the 1980s, with the creation of regional telephone companies, called "Baby-Bells" and Microsoft, which has been raped in 1999; "It is high time to put an end to the illegal pricing by OPEC," said Chuck Grbadley, one of the Republican senators pressuring legislation, in a statement released last week. . . We are "determined to reduce our dependence on foreign oil, especially when its price is artificially and illegally charged. Our bill shows OPEC members that we will not tolerate their blatant antitrust violations. " Related: Is the Oil World in Panic Mode?
However, the NOPEC idea is not new and dates back to at least 2000. President George W. Bush and President Barack Obama have threatened to use their veto to prevent it from becoming law.In 2007, a similar bill was pbaded in the House of Representatives by 345 votes against 72, and in the Senate by 70 votes to 23, to then fail in the face of the opposition of the White House.This time, however, there is a good chance that Trump will sign such a bill
Anti-OPEC rhetoric
Trump criticized the OPEC for years and during the 2016 presidential election. Election war of words escalated to the front pages of international newspapers. at the time that the United States should block all oil imports from Saudi Arabia Trump also promised to ensure American energy independence against "our enemies and oil cartels," while creating a "complete American energy independence." In 1965, just days after the election Trump, the oil minister and Aramco's president, Khalid al-Falih fought back. He said in an interview with the Financial Times that "President-elect Trump will see in his heart the benefits [of Saudi oil imports] and I think the oil industry will also advise him to block the trade of any product."
"The United States is in a way the flagship of capitalism and free markets," he added. "The United States continues to be a very important part of a global industry that is interconnected, that is, that deals with a fungible raw material that is So free trade equalization is very healthy for oil. "
The Saudi oil minister added that the Saudis were waiting for Trump's presidency, his presidential campaign being raised to "50,000 feet of ads" that could change. this time, Trump and Saudi Arabia have put the long-standing relations between the two countries back on solid footing. Saudi Arabia helped persuade Trump to reimpose sanctions against Iran, while Riyadh, for its part, bowed to Trump's tweets calling for OPEC and the Saudis to commit to increasing oil production to offset high oil and gas prices. the administration as the mid-term election of the Congress in November.
"The OPEC Monopoly must remember that gas prices are rising and that they are doing little to help.On the contrary, they are driving up prices because the United States is defending a lot of their members for very little dollars.This must be a two way street.LOW THE PRICES NOW! "Trump tweeted in one of the many warnings at OPEC. Related: Iraq orders an Internet blackout to quell protests
However, despite the current overhaul of the US-Saudi strategy book on the verification of the Iran's geological influence in the Middle East and its nuclear ambitions, Trump (just 18 months in power) is increasingly showing an unprecedented ability to offend long-time allies while appeasing rivals in the long run, including Russia and North Korea. US-Saudi relations, however, if a NOPEC bill was pbaded by both houses and signed by the president, would be cataclysmic. This would indicate more US and even economic geopolitical hegemony and would destabilize global oil markets and the geopolitical structure of the Middle East. Although many hesitate as OPEC and the Saudis regain control of the world's oil markets, a forced reconfiguration of this system would be counterproductive and it is likely that more Saudi-Russian agreement on the control of oil brands and geopolitical transactions. Only the Saudis would rebel against what they saw as a frontal attack on the economic life of the country but against the ruling royal family, but they would have trouble understanding it. It should be remembered that OPEC and now OPEC with its non-OPEC partners are masters of collusion and supply control and even geopolitics in a price control effort – this which is not allowed by law
. would be to let the market determine prices (supply / demand, and even geopolitical developments) and not to unduly interfere in the process.
By Tim Daiss for Oilprice.com
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