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Judge lets antitrust oil price-fixing case against shale producers proceed
The court said plaintiffs plausibly alleged a conspiracy through production decisions and related communications, while defendants denied wrongdoing and pointed to production data cuts.
OilPrice reports that a federal judge has rejected efforts to dismiss antitrust lawsuits accusing major U.S. shale producers of coordinating production cuts to support higher oil and fuel prices.
According to the report, U.S. District Judge Matthew Garcia in New Mexico allowed the consolidated litigation to move forward, finding the plaintiffs plausibly alleged a conspiracy based on production decisions, market conditions, communications, and public statements.
The outlet adds that Garcia said the complaints identified producer interactions that went beyond the normal exchange of industry information, while noting that this finding is not proof of price fixing.
Diamondback Energy, Occidental Petroleum, and other defendants denied wrongdoing, and the report says they argued actual production data contradicted the plaintiffs' claims, including that several producers expanded output during the period alleged to involve coordination.