http://news.yahoo.com/…
The House of Representatives overwhelmingly approved legislation on Tuesday allowing the Justice Department to sue OPEC members for limiting oil supplies and working together to set crude prices, but the White House threatened to veto the measure.The bill would subject OPEC oil producers, including Saudi Arabia, Iran and Venezuela, to the same antitrust laws that U.S. companies must follow.
The measure passed in a 324-84 vote, a big enough margin to override a presidential veto.
The legislation also creates a Justice Department task force to aggressively investigate gasoline price gouging and energy market manipulation.
“This bill guarantees that oil prices will reflect supply and demand economic rules, instead of wildly speculative and perhaps illegal activities,” said Democratic Rep. Steve Kagen of Wisconsin, who sponsored the legislation.
The lawmaker said Americans “are at the mercy” of OPEC for how much they pay for gasoline, which this week hit a record average of $3.79 a gallon.
The White House opposes the bill, saying that targeting OPEC investment in the United States as a source for damage awards “would likely spur retaliatory action against American interests in those countries and lead to a reduction in oil available to U.S. refiners.”
The administration said less oil going to refineries would limit available gasoline supplies and raise fuel prices.
Foreign investment in U.S. oil infrastructure has declined in the last decade. But the state-owned oil companies of several OPEC nations are owners of U.S. refineries, and those investments could be affected if the legislation becomes law, said Arlington, Virginia-based FBR Capital Markets Corp.
The bill also requires the Government Accountability Office to carryout a study on the effects of prior oil company mergers on energy prices.
The Senate would still have to approve the House measure.
The Senate previously approved similar legislation as part of a broad energy bill. However, the OPEC-suing provision was removed after White House opposition in order to get the underlying energy legislation signed into law.
Speculation is an essential knowledge source for the market. Just like any other source it’s important for the market to function optimally. The speculation is wild because some group of jackasses in Congress and the executive branch of the USA government are waging wars on people who did us no harm. Because they are screwing up the value of the currency and attempting to carve the path for future energy sources. No bill can guarantee prices. They will likely cause shortages like the late 1970’s. As Mises said when the government interferes and screws things up… they know nothing else but to continue to interfere and to screw up.
I’m not sure how the hell they can enforce anything like this, I’ve not read the bill yet, but this sounds to me to be a declaration or war or at least an aggressive act.
If the government wants prices to drop stop the intervention. Leave the market alone. Leave the people and governments of the oil producing nations alone. Leave domestic energy production alone. Let them build refineries, let them drill for new oil sources, let them build nuke plants. Then will the costs normalize.
