U.S. Oil Price-Fixing Lawsuit: How Businesses Have Been Affected

Since 2021, businesses across the country have struggled with historically high gasoline and diesel prices, placing an overwhelming financial burden on those that rely on fuel for daily operations. While many attributed these rising costs to economic fluctuations, a major lawsuit now alleges that the surge in fuel prices was not due to supply and demand—but rather a coordinated effort by U.S. shale oil producers and OPEC (the Organization of the Petroleum Exporting Countries) to manipulate oil prices.

If your business has been impacted by inflated fuel costs, you may have legal recourse. Read on to learn more about the U.S. Oil Price-Fixing Lawsuit and how it could affect you.

The lawsuit, filed in federal court, claims that some of the largest U.S. shale oil producers conspired with OPEC to limit oil production, effectively driving up the price of crude oil, gasoline, and diesel.

The key allegations include:

• OPEC’s Price War Against U.S. Shale Producers – Initially, OPEC attempted to undercut U.S. shale oil producers by flooding the market with cheap oil, aiming to force them out of business.
• Collusion to Limit Production – When OPEC’s efforts failed, they allegedly colluded with American oil companies to restrict output—causing prices to skyrocket.
• Artificial Inflation of Fuel Prices Since 2021 – Instead of increasing production as fuel demand surged after the pandemic, these companies intentionally kept supply low, ensuring that gasoline and diesel prices remained high.

Businesses that rely on fuel for transportation, logistics, and daily operations have borne the brunt of these artificially inflated prices.

The City of Baltimore has filed a class-action lawsuit against major U.S. shale oil producers, alleging a violation of antitrust laws through price-fixing.

Filed on August 24, 2024, in New Mexico federal court, the lawsuit, Mayor and City Council of Baltimore v. Permian Resources Corp et al. (No. 24-cv-842), seeks more than $5 million in damages and aims to put a stop to future price-fixing practices.

Baltimore’s lawsuit is just the beginning. Other businesses and organizations are now exploring legal action to recover losses from years of artificially high fuel prices.

The oil price-fixing lawsuits target some of the largest oil producers in the U.S., including:

• Permian Resources Corp. (formerly Centennial Resource Development, Inc.)
• Chesapeake Energy Corp.
• Continental Resources Inc.
• Diamondback Energy, Inc.
• EOG Resources, Inc.
• Hess Corp.
• Occidental Petroleum Corp.
• Pioneer Natural Resources Co. (now part of Exxon Mobil)

These companies are accused of engaging in a coordinated effort to suppress oil production, driving up fuel costs, and violating federal antitrust laws.