Big oil companies defeat US consumer lawsuit over production, prices
Adds details from decision, case citation
By Jonathan Stempel
Sept 16 (Reuters) -Several oil companies including Exxon Mobil XOM.N and Chevron CVX.N defeated anappeal on Monday byconsumers who accused them of colluding with former U.S. President Donald Trump, Russia and Saudi Arabia to cut oil production, boosting prices at the pump.
In a 3-0 decision, the9th U.S. Circuit Court of Appeals in San Francisco said two dozenconsumers could not pursue class action claims becausethey concernedpolitical questions and the oil-producing policies of foreign countries.
The courtalso found a lack of proof that the oil companies violated antitrust law by conspiring to raise prices.
Other defendants included Devon Energy DVN.N, Energy Transfer LP ET.N, Occidental Petroleum OXY.N, Phillips 66 PSX.N, Continental Resources, Hilcorp Energy and the American Petroleum Institute.
Lawyers for the consumers did not immediately respond to requests for comment. The defendants' lawyers did not immediately respond to similar requests.
The lawsuit stemmed from a price war that broke out in March 2020 between Russia and Saudi Arabia.
Both countries boosted production quickly, ending three years of production and sales limits, after Russia rejected cuts proposed by Saudi Arabia and other OPEC producers.
Consumers said the oil companies' complaints about sinking prices prompted the Trump administration to cajole oil-producing countries to slash production , boosting industry profitability.
Within about two years, the price of a barrel of oil LCOc1 soared above $100 from less than $20, while the U.S. retail price of a gallon of gas more than doubled to over $5.
In Monday's decision, Circuit Judge Ryan Nelson said courts shouldn't second-guess White House foreign policy, and had no authority to order Russia and Saudi Arabia how to manage their oil resources.
He also said the early 2020 start of the COVID-19 pandemic drastically reduced oil demand, and was an "obvious alternative explanation" for why oil companies cut production.
Monday's decision upheld a January 2023 ruling by U.S. District Judge Jeffrey White in Oakland, California.
Nelson was appointed to the bench by Trump, a Republican. The other judges on Monday's panel, Ronald Gould and Richard Tallman, were appointed by Democratic President Bill Clinton.
The case is D'Augusta et al v American Petroleum Institute et al, 9th U.S. Circuit Court of Appeals, No. 23-15878.
Reporting by Jonathan Stempel in New York; Editing by David Gregorio and Nick Zieminski
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