Will US Senate Approval for NOPEC Bill Increase OPEC Oil Production?

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As per inside reports after US Senate committee passed a bill titled H.R.2393 – NOPEC on Thursday, now war for increasing oil production has reached into next level where both sides have sharpen their strategies but amidst these development there are reports that CIA Director Bill Burns met Saudi Crown Prince Mohammad bin Salman in the month of April for amicable solution of current impasse and outcome of the is not known yet, but passage of NOPEC bill indicates that both sides have not reached to the a solution.

New Delhi (ABC Live India): A US Senate committee passed a bill titled H.R.2393 – NOPEC on Thursday that could expose the Organisation of the Petroleum Exporting Countries (OPEC) and partners to lawsuits for collusion on boosting crude oil prices.

The No Oil Producing and Exporting Cartels Act (NOPEC) is a U.S. Congressional bill initially introduced in 2000 designed to remove state immunity from national oil companies (NOCs) of OPEC member countries. The bill aims to enable the U.S. Department of Justice to take judiciary action under U.S. antitrust law for “anti-competitive attempts to limit the supply of petroleum and its impact on oil prices”.

 These NOCs are currently exempt from the provisions of the Foreign Sovereign Immunities Act when acting in a commercial capacity. Various versions of the bill have been introduced and debated in U.S. Congress for almost 20 years, but the bill has never passed into law. Iterations of the bill were introduced 16 times from 2000 to 2012, with various levels of “success” in advancing in the legislative process.

The main question that arises is whether a NOPEC bill will ever pass Congress and signed into law by a sitting president, and if so, how comprehensive such a law would be. However, in order to address that question, a developed understanding of the bill’s nature is crucial. 

Saudi Arabia and other OPEC producers have rebuffed requests by the United States and other consuming countries to boost oil production beyond gradual amounts, even as oil consumption recovers from the Covid-19 pandemic and Russian supply falls after its invasion of Ukraine.

It is pertinent to mention that Saudi Arabia in year 2019 has already threatened United States that it will start to sell oil in other currencies if Washington passed NOPEC. It is on records that OPEC sells its oil only on US Dollars which has supported the US currency to be served as Global Currency.   

As per inside reports after US Senate committee passed a bill titled H.R.2393 – NOPEC on Thursday, now war for increasing oil production  has reached into next level where both sides have sharpen their strategies but amidst  these development there are reports that CIA Director Bill Burns met Saudi Crown Prince Mohammad bin Salman in the month of  April for amicable solution of current impasse and outcome of the is not known yet, but passage of NOPEC bill indicates that  both sides have not reached to the a solution.

As per experts on oils trades we have to wait for at least three months to witness increase of oil production by OPEC which will ultimately reduce the historic oil prices after OPEC reduced oil production due to COVID-19 pandemic.

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