The Senate’s second-biggest Democrat blasts the Saudis for siding with Putin while key lawmakers push “NOPEC” legislation
Democratic Senate leaders and an influential Senate Republican are pushing for legislation that would backfire on OPEC+ after the cartel’s decision to cut oil production — with Senator Richard Durbin questioning whether Saudi Arabia is even a US ally .
The move comes after the international cartel stunned the government by announcing a cut of 2 million barrels a day of oil – keeping prices high amid economic uncertainty and keeping Russian President Vladimir Putin’s oil lifeline amid his brutal war against Ukraine.
Durbin joined Senate Majority Leader Charles Schumer in moving forward a “NOPEC” bill that, if enacted, would allow lawsuits in U.S. courts to try to find OPEC for violation to prosecute against antitrust rules. It is supported by Republican Senator Charles Grassley, who calls for a crackdown on the cartel.
“You wonder, the United States has this nominal alliance with a country that doesn’t seem to share our values, and when it comes to wartime, invading Ukraine comes on the wrong side. I wonder if they are our allies or not and if we should trust them when it comes to making critical decisions,” Durbin said.
Senator Richard Durbin, the Majority Leader, spoke of the “nominal alliance” between the US and Saudi Arabia following announced OPEC+ production cuts
He spoke a day after Schumer broke into Saudi Arabia for hugging Putin, an OPEC+ member.
“What Saudi Arabia did to help Putin continue his despicable, vicious war against Ukraine will long be remembered by Americans,” Schumer warned Thursday.
“We are reviewing all legislative tools to best deal with this appalling and deeply cynical action, including the NOPEC law,” he said in a statement.
Grassley announced his bill in a statement. “My bipartisan NOPEC bill would crack down on these foreign oil cartel tactics. It’s already been cleared by the Judiciary Committee on a bipartisan basis, and there’s no reason why it shouldn’t pass as part of our upcoming defense clearance efforts. Our energy supply is a matter of national security.”
Durbin, appearing on MSBNC’s Morning Joe on Friday, cited a number of concerns about the Saudi kingdom, which the US has made a partner on energy and security for decades, and has attacked the Trump administration for maintaining ties on.
“Well, look at the litany of problems we’ve had with Saudi Arabia beginning with 9/11, the unanswered questions, [murdered dissident] Jamal Khashoggi, still unanswered, the complicity of the Trump administration, which was a lap dog for the Saudi kingdom, look at what’s going on today, dissidents and women face massive discrimination in this country.
The government has described the cuts as a gift to Russian President Vladimir Putin
Sen. Chuck Grassley, R-Iowa, the senior member of the Senate Judiciary Committee, wants to quickly advance bipartisan legislation allowing lawsuits against the OPEC cartel
OPEC’s announcement comes three months after Biden’s infamous punch with Crown Prince Mohammed bin Salman
The price cut comes as Russia, a major oil producer, continues its brutal war against Ukraine, which it can fund with oil revenues
President Joe Biden was forced on Thursday to defend his own efforts to manage the strained Saudi relationship after visiting the country in July and exchanging an infamous fist with Crown Prince Muhammad bin Salman.
“The trip was essentially not about oil. The trip was about the Middle East and about Israel and the rationalization of positions. But it’s a disappointment and says there are problems,” Biden said.
His administration said everything is on the table, but Biden has been vague in his own comments on a possible response.
“We are examining alternatives. We haven’t decided yet,” Biden said as he left the White House for a trip to New York.
Grassley of Iowa, the top Republican on the Judiciary Committee, says he plans to try to attach the NOPEC bill to the National Defense Authorization Act — which is considered a “must-pass” law.
The measure cleared his panel in May and passed the house. If enacted, it would remove the cartel’s “sovereign immunity,” which protects the cartel from lawsuits, and change US antitrust laws.
According to a Grassley press release, it specifically authorizes the Justice Department to file lawsuits against members of the oil cartel for antitrust violations. It would clarify that neither state immunity nor the Act of State doctrine prevent a court from deciding antitrust charges brought against foreign governments for illegal pricing, production and distribution of petroleum products.’
The announced output cut comes weeks before the November election, at a time when Democrats are facing headwinds from American inflation concerns. Biden’s own popularity remains stuck in the ’40s, and the White House has emphasized his actions to try to keep gas prices down.
Meanwhile, Biden announced at a fundraiser Thursday night that the world must take seriously Putin’s threats to use tactical nuclear weapons in Ukraine, and that “we haven’t faced the prospect of Armageddon since Kennedy and the Cuban Missile Crisis.”