Some experts believe that the global oil market is under threat as the US lawmakers are about to introduce certain adjustments to the country’s legislation. The White House intends to take a different stance towards the congressional bill known as NOPEC that stands for No Oil Producing and Exporting Cartels. If this scenario unfolds, then the global and financial markets will face drastic changes.
The NOPEC bill that is being discussed by the US Congress implies that an antitrust law will be made applicable to the oil cartel. It is going to be an exceptional case that has never occurred in the international law practice yet. The global organizations and countries are supposedly immune to domestic laws of other countries. That is why such bills have never been approved yet.
However, the NOPEC bill is a unique one. Both the American President and the Congress have supported this initiative. In 2019, the House of Representatives passed the bill. Besides, Donald Trump has also advocated for the application of an antitrust law against OPEC that was criticized by the president for maintaining too high oil prices.
If the NOPEC bill is approved, it may lead to massive political upheavals, some experts say. One of the repercussions of such a move can be the dissolution of OPEC. At the same time, the bill may cause new trade wars as independent oil producers are likely to be dismayed by unjust distribution of the natural resource rent. Saudi Arabia has already threatened to abandon the American dollar in international payments in case the United States passes the bill. As a result, the status of the US dollar as the dominant currency may weaken or even be lost.