US Judge Allows Shale Oil Price-Fixing Lawsuits to Proceed

A US federal judge has ruled that a series of lawsuits against major shale oil producers can proceed. The lawsuits, filed by commercial and government consumer plaintiffs in 2024, allege that the producers conspired to reduce shale oil production, leading to higher prices for crude oil and related products.

The defendants, including Diamondback Energy and Occidental Petroleum, had argued that the claims should be dismissed because resolving them would require ruling on political and foreign policy questions. However, US District Judge Matthew Garcia in New Mexico rejected this argument, stating that 'the core question here is whether domestic corporations and individuals conspired to coordinate production cuts.'

Garcia also noted that the plaintiffs had identified interactions between the defendants that went beyond standard industry information sharing, providing some support for an inference of an agreement.