House OKs Bill to Probe Oil Price Fixing

The U.S. House passed a bill requiring the Clinton administration to determine whether members of the Organization of Petroleum Exporting Countries are fixing oil prices and to get tough with any that are doing so. The measure, approved 382 to 38, is a response to the surge in oil prices that has brought the average retail price for gasoline to $1.54 per gallon nationwide, up more than 50% in the last year. Analysts said the bill would have little impact on oil markets and is more about providing a chance for lawmakers to speak out. The bill would require the administration to send a report to Congress within 30 days that details the economic and security relationship with each major oil-exporting nation, and to describe which, if any, are engaged in oil price fixing that harms the U.S. If any are found to be doing so, the president would be directed to undertake a “diplomatic campaign” to persuade oil producers to end the practice and to begin multilateral negotiations to cut or end foreign aid or military arms exports. Energy Secretary Bill Richardson has said OPEC nations are likely to agree to increase production next week. Crude oil futures have backed off their March 7 high of $34.13 a barrel to close at $27.46 a barrel for May delivery.