A federal judge has allowed antitrust lawsuits accusing some of the biggest U.S. shale producers of coordinating production cuts to keep oil and fuel prices higher to proceed. U.S. District Judge Matthew Garcia in New Mexico rejected efforts by Diamondback Energy, Occidental Petroleum and other producers to dismiss the consolidated litigation.
The lawsuits, filed beginning in 2024, allege that producers restrained shale output and ultimately pushed up prices for crude oil, gasoline, diesel and heating oil. Garcia found the plaintiffs had plausibly alleged a conspiracy based on production decisions, market conditions, communications and public statements.
Diamondback, Occidental and the other defendants deny wrongdoing and argue that actual production data cuts against the allegation. The court will now examine whether decisions to restrain that supply were made independently or together.
