Big oil companies defeat US consumer lawsuit over production, prices | World News
 "As Brent crude price trades below $70 per barrel, analysts are backing aviation and tyre stocks and are cautious about paints and oil marketing companies (OMCs). “Oil prices are down over 20 per cent from their recent peak and bode well for sectors")
Within about two years, the price of a barrel of oil soared above $100 from less than $20, while the US retail price of a gallon of gas more than doubled to over $5 | Representative Picture
Several oil companies including Exxon Mobil and Chevron defeated an appeal on Monday by consumers who accused them of colluding with former US President Donald Trump, Russia and Saudi Arabia to cut oil production, boosting prices at the pump.
In a 3-0 decision, the 9th US Circuit Court of Appeals in San Francisco said two dozen consumers could not pursue class action claims because they concerned political questions and the oil-producing policies of foreign countries.
The court also found a lack of proof that the oil companies violated antitrust law by conspiring to raise prices.
Other defendants included Devon Energy, Energy Transfer LP, Occidental Petroleum, Phillips 66 , Continental Resources, Hilcorp Energy and the American Petroleum Institute.
Lawyers for the consumers did not immediately respond to requests for comment. The defendants’ lawyers did not immediately respond to similar requests.
The lawsuit stemmed from a price war that broke out in March 2020 between Russia and Saudi Arabia.
Both countries boosted production quickly, ending three years of production and sales limits, after Russia rejected cuts proposed by Saudi Arabia and other OPEC producers.
Consumers said the oil companies’ complaints about sinking prices prompted the Trump administration to cajole oil-producing countries to slash production, boosting industry profitability.
Within about two years, the price of a barrel of oil soared above $100 from less than $20, while the US retail price of a gallon of gas more than doubled to over $5.
In Monday’s decision, Circuit Judge Ryan Nelson said courts shouldn’t second-guess White House foreign policy, and had no authority to order Russia and Saudi Arabia how to manage their oil resources.
He also said the early 2020 start of the Covid-19 pandemic drastically reduced oil demand, and was an “obvious alternative explanation” for why oil companies cut production.
Monday’s decision upheld a January 2023 ruling by US District Judge Jeffrey White in Oakland, California.
Nelson was appointed to the bench by Trump, a Republican. The other judges on Monday’s panel, Ronald Gould and Richard Tallman, were appointed by Democratic President Bill Clinton.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Sep 17 2024 | 10:30 AM IST
