Judge Allows Price-Fixing Case Against U.S. Shale Producers to Proceed

A federal judge in New Mexico has allowed antitrust lawsuits to proceed against some of the biggest U.S. shale producers, accusing them of coordinating production cuts to keep oil and fuel prices higher.

The lawsuits, filed beginning in 2024, allege that producers restrained shale output and ultimately pushed up prices for crude oil, gasoline, diesel, and heating oil.

U.S. District Judge Matthew Garcia rejected efforts by Diamondback Energy, Occidental Petroleum, and other producers to dismiss the consolidated litigation.

The judge found that the plaintiffs had plausibly alleged a conspiracy based on production decisions, market conditions, communications, and public statements.