World | USA
US House passes bill to sue Opec over oil prices
The US House of Representatives overwhelmingly approved legislation on Tuesday allowing the Justice Department to sue members of the Oil and Petroleum Exporting Countries (Opec) for limiting oil supplies and working together to set crude prices, but the White House threatened to veto the measure.
- Reuters
- Published: 00:15 May 21, 2008
- The bill would subject Opec oil producers, including Saudi Arabia, Iran and Venezuela, to the same antitrust laws that US companies must follow.
- Image Credit:
Washington: The US House of Representatives overwhelmingly approved legislation on Tuesday allowing the Justice Department to sue members of the Oil and Petroleum Exporting Countries (Opec) for limiting oil supplies and working together to set crude prices, but the White House threatened to veto the measure.
The bill would subject Opec oil producers, including Saudi Arabia, Iran and Venezuela, to the same antitrust laws that US companies must follow.
The measure passed in a 324-84 vote, a big enough margin to override a presidential veto.
The legislation also creates a Justice Department task force to aggressively investigate petrol price gouging and energy market manipulation.
"This bill guarantees that oil prices will reflect supply and demand economic rules, instead of wildly speculative and perhaps illegal activities," said Democratic Representative Steve Kagen of Wisconsin, who sponsored the legislation.
The White House opposes the bill, saying that targeting Opec investment in the United States as a source for damage awards "would likely spur retaliatory action against American interests in those countries and lead to a reduction in oil available to US refiners."
The administration said less oil going to refineries would limit available gasoline supplies and raise fuel prices.
The bill also requires the Government Accountability Office to carryout a study on the effects of prior oil company mergers on energy prices.
The Senate would still have to approve the House measure.
Share this article
Related Articles
-
Oil at new record above $134
Oil surges near $134 on supply woes and weak dollar
-
Oil and gas prices will continue to set records
Oil and gas prices will continue to set records
News Editor's choice
-
Anti-terror force enlisted for Haj
Aerial surveillance to complement normal security operations
-
English to stay as medium of instruction
Lack of funding of scientific research in Arab world criticised
-
Global Village opens with a revamped layout
Four gates will have themes making it easier to find specific pavilions
