House committee support NOPEC bill

House committee support NOPEC bill

A House of Representatives committee has approved a bill that will make OPEC members accountable to US antitrust legislation.

If passed into law, the No Oil Producing and Exporting Cartels Act (or NOPEC as it is also known as) would allow the US attorney general to sue separate members of OPEC or the entire group for collusion. Currently members of the bloc are protected by sovereign immunity.

Several bills aimed at targeting OPEC with anti-cartel measures have been put forward over the past two decades, although none have reached a full House vote and it is unclear whether this one will either.

It is unlikely it will, considering the close relationship between the US and Riyadh, the leader of OPEC. Despite the importance of the relationship, on both sides, threats of law suits would result with a quick reaction and retaliation.

Oil majors have also warned of retaliation from OPEC against the NOPEC bill, which combined with low oil prices means it is even less likely to come into law.

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