Baltimore Lawsuit Alleges Shale Investments Fueled Price Fixing Scheme
The city of Baltimore filed a class action lawsuit on Saturday, alleging that major U.S. shale drillers colluded to fix oil prices, the latest in a series of lawsuits filed this year claiming that U.S. oil producers conspired with each other and with OPEC to drive oil prices up.
The new lawsuit, filed by the mayor of Baltimore and its city council, is notable in part because it alleges Wall Street investment firms played a role by pressuring shale drillers to coordinate their output to prevent fueling price wars with the Organization of Petroleum Exporting Countries (OPEC) and other oil producers abroad. Wall Street companies were among the largest investors in multiple competing shale producers at the same time — and pushed them all to engage in “capital discipline,” the lawsuit alleges.