Senate panel advances anti-OPEC bill as Democrats face ‘increasing inflation threat’
The Senate Judiciary Committee on Thursday voted 17-4 in favor of a bipartisan bill that would expose the Organization of the Petroleum Exporting Countries and its allies to antitrust lawsuits, sparking discussion about whether such legislation has a chance this year.
According to Benjamin Salisbury, research director at Height Capital Markets, there are reasons why the No Oil Producing and Exporting Cartels Act is more likely than ever to become reality.
“Democratic policymakers are increasingly threatened by inflation, especially in fuel prices, with few tools to fight back. OPEC+ in general and Saudi Arabia in particular have been cold on calls of President Biden to increase production. Additionally, Saudi Arabia’s alignment with OPEC+, including Russia, during the Ukraine war is exacerbating the rift between Biden and MBS, making opposition to the project more politically dangerous for policymakers,” Salisbury said in a note Friday, referring to Saudi Arabia.
Crown Prince, Mohammed bin Salman.
Related: Biden talks about his efforts to rein in high prices, as analysts see a ‘tough’ midterm election for him unless inflation comes down
And see : What can Biden and Congress do to fight inflation? “Just not much”
On the other hand, the Height analyst said there are also reasons to believe the success of NOPEC is “less likely than ever”, including the fact that “there is questionable evidence of OPEC as a price setter, in our view, except in managing declines in demand for the benefit of the US oil industry.
Versions of the legislation have existed since 2000 and won committee approval, but never became law.
“The opposition of the American oil industry
Saudi Arabia and other American industries fearing retaliation have generally slowed it down,” Salisbury said.
Extract from the archives of MarketWatch (2007): House targets OPEC, while White House threatens to veto bill that would authorize legal action
President Joe Biden’s administration does not currently have an official position on the NOPEC Act, according to White House press secretary Jen Psaki.
“The potential implications and unintended consequences of this legislation require further study and reflection, particularly at this dynamic time in global energy markets brought about by President Putin’s invasion of Ukraine,” he said. she said Thursday, referring to Russian leader Vladimir Putin.
“So we’re taking a look at it and certainly have concerns about the potential implications,” Psaki told reporters during a briefing, one of his last before leaving the White House.
were higher on Friday and headed for another strong weekly gain as supply concerns dominated.