OPEC Is Facing The United States

OPEC Is Facing The United States

oilsOPEC is facing another challenge with the United States. OPEC has been seen as the “Boss” to influence the Oil price around the world. They are now back on the ring, ready to face off with Washington one more time. But this time directly from President Trump while Congress is standing on the side line ready to act.

President Trump has often criticized OPEC, stating the oil prices should be at $30/bbl.

OPEC has been perceived as the mob boss taking money away from American citizens.

U.S. lawmakers have resurrected the so-called “No Oil Production and Exporting Cartels Act” or NOPEC. This Act will make OPEC subject to the Sherman antitrust law. The bill was presented in late May and cleared its first legislative hurdle yearly June by the House Judiciary Committee than sent to the floor for deliberation.
If the bill passes it would permit the U.S. government to sue OPEC for influencing the energy market, it would open the door for the U.S. government to attempt to claim billions of dollars on damages.

OPEC has met earlier in June in Vienna to discuss oil production. The possibility for the bill to pass is small but if this happened the consequences would be devastating for OPEC.

Since 2000 U.S. politicians have tried to pass the NOPEC bill, but the White House has opposed it every single time. With the current government led by President Trump the NOPEC bill is most likely to be signed.

The house leadership must decide if they want to bring the bill to the floor for a vote. NOPEC doesn’t requires the floor to vote. It can simply be added as an amendment to a larger bill the leadership could be unwilling to stop.

The comments in regards of oil prices have increased from Trump social media accounts.

“Looks like OPEC is at it again,” Trump tweeted on April 20,

“Oil prices are too high, OPEC is at it again. Not good!”   Trump tweeted in June

We need to wait and see how this is going to playout. If the bill passes it would be a big blow for OPEC. It could expose them to justify on the front Congress their actions. It could also add more U.S. influence into the energy market. To be continued.