Judge Greenlights Antitrust Lawsuits Against Major Oil Producers

A federal judge in New Mexico has ruled that a series of lawsuits alleging major U.S. oil producers conspired to curb shale oil production can proceed.

The plaintiffs claim that by limiting shale production, the defendants illegally fixed prices for crude oil and related products such as gasoline, diesel fuel, and home heating oil.

U.S. District Judge Matthew Garcia rejected the producers' arguments that resolving the claims would require ruling on political and foreign policy questions best addressed outside of court.

The judge said that the plaintiffs had plausibly alleged a conspiracy to reduce shale oil production, citing market conditions and defendants' production decisions, communications, and public statements as evidence.