U.S. judge bans OPEC from controlling oil production

Cartel ignores class action suit against it in Alabama federal district court; international legal expert says result “nice curiosity that has no practical meaning”

by The Associated Press

A federal judge ruling in a price-fixing lawsuit filed against OPEC by an Alabama service station barred the oil cartel from controlling Mideast crude-oil production.

A lawyer for the gas station said April 3 he expects the petroleum cartel to abide by the outcome of the lawsuit, which OPEC has ignored so far. But an expert in international law called the judge’s order virtually unenforceable.

OPEC, based in Vienna, Austria, did not respond to questions about the case.

Carl and Debbie Prewitt, who own the Eastwood Texaco Service Center in Birmingham, sued the Organization of Petroleum Exporting Countries last year as gasoline prices spiraled upward.

The Prewitts, who asked that they be allowed to represent all U.S. petroleum purchasers, argued that the 11-nation organization had illegally limited oil production to send prices higher.

OPEC did not respond

Weiner certified the case as a nationwide class-action lawsuit and ruled OPEC had violated U.S. antitrust laws by controlling production to fix oil prices. The judge then barred OPEC from doing virtually anything to set or enforce production quotas among member nations.

Michael Straus, an attorney for the Prewitts, said he was monitoring OPEC to see if the cartel abides by the order.

“I can’t speculate as to how OPEC treats the lawful order of a district court, but my expectation is that it will be respected,” said Straus.

A judge can levy contempt fines when court orders are ignored, but an assistant law professor at the University of Alabama said a U.S. court doesn’t have the power to tell OPEC what to do.

“It’s a nice curiosity that has no practical meaning,” said Jonathan Berck, who specializes in international law.