Neoliberals Oppose Market Intervention — Unless the Market Is Screwing US Corporations
In response to OPEC+’s decision to cut oil production to protect profits, the Biden administration is proposing market intervention. But when American oil companies acted similarly earlier this year, the White House was fine with it.
Abdulaziz bin Salman, Saudi Arabia’s energy minister, speaks during a news conference following OPEC+’s meeting in Vienna on October 5, 2022. (Akos Stiller / Bloomberg via Getty Images)
On October 5, the Organization of the Petroleum Exporting Countries Plus (OPEC+) announced its decision to cut oil production by an unprecedented two million barrels, skyrocketing forecasted global oil prices in anticipation of yet another disruption to supply chains this year after Russia’s invasion of Ukraine.
The White House immediately condemned the organization’s decision, with National Security Council spokesman John Kirby claiming it was maliciously spearheaded by Saudi Arabia in order to “increase Russian revenues and blunt the effectiveness of sanctions” against the fellow OPEC+ member.
In response to the move, the Biden administration is reportedly considering pushing for a bill called No Oil Producing and Exporting Cartels (NOPEC). The bill would change antitrust laws to revoke the sovereign immunity protecting OPEC+ members, allowing the Justice Department to sue nations that restrain trade in oil, natural gas, or any petroleum product.
This article is for subscribers only. Please login or subscribe to access our full archives and beautiful print and digital magazine starting at just $3 a month.