US Senate committee investigates 18 oil producers for alleged price collusion with OPEC

The US Senate Budget Committee on Thursday launched an investigation of 18 domestic oil producers into any attempts to illegally coordinate oil prices with the Organization of the Petroleum Exporting Countries (OPEC).

The producers the committee is investigating include Exxon Mobil XOM-N, Chevron CVX-N and ConocoPhillips COP-N. Neither company immediately responded to requests for comment.

Interest in possible collusion between oil companies and production groups has increased after the US Federal Trade Commission (FTC) excluded former Pioneer Natural Resources CEO Scott Sheffield from the board in May. Exxon administration, due to allegations that it attempted to collude with OPEC to raise oil prices. The FTC made this decision by approving Exxon's $60 billion purchase of Pioneer.

Sheffield has denied the FTC's allegations.

Senator Sheldon Whitehouse, a Democrat and chairman of the Budget Committee, called for an investigation into the companies.

“In light of the findings against Sheffield, I seek to understand whether other oil producers operating in the United States could also have coordinated with OPEC and OPEC+ representatives regarding oil production, oil prices crude oil and the relationship between production and prices of petroleum products,” Whitehouse said in a statement.

The industry group the American Petroleum Institute (API) called the investigation an “election year stunt.”

API spokesperson Bethany Williams said: “This is yet another election campaign aimed at distracting from misguided policies as the administration continues to look to foreign producers to respond to the growing demand for reliable and affordable energy. »

President Joe Biden, a Democrat, hopes to win re-election in November. Whitehouse, of Rhode Island, is seeking a fourth term in the U.S. Senate.