Companies that collude on production capacity with their competitors are breaking US Law and the laws of every Western country. The major oil producers do this in clear view of the public and no action is taken by the US Government. For that matter, it seems the EEC take no action either.
The lack of vigorous competition between the oil producers and its inevitable result, rising prices in a market of growing demand and speculation, is a declaration of economic war on net oil importers.
It is a massive transfer of wealth to the oil exporters but it is not based on "free markets". It is based on rigged markets, rigged by interfering with competition. "Free-for-all trade" is what we have, not free trade.
Make no mistake this is a hostile act based not just on greed but payback.
America may be the most powerful military in the world but it is now vulnerable to its lack of control of its energy pricing.
The White House is too cozy with the oil industry, which is experiencing record profits thus proving there is collusion all through the supply chain.
The refining industry in the USA has consolidated and closed down many refineries to diminish competition so as to raise profits by limiting supply and competition.
It staggers me that we have so little rebellion against these illegal acts. Our representatives in Congress seem to be ineffective at pressing the Justice Department to take action. (Where is Teddy Roosevelt when we need him?)
No US government seems to have treated OPEC as an illegal organization that effectively fixes supply and therefore raises prices illegally.
The good news is that this will help to bring non-hydrocarbon energy sources (e.g. solar) to market faster. The bad news, in the mean time, is the massive wealth transfer to the oil producers is an unfair gain and amounts to an act of war. We should use non-military warfare to respond. It hurts our economic growth and steals savings from us all.
Make law, not war. (The mantra of Benjamin Ferencz) The oil producers have trillions of dollars and Euros in our markets. There is legal leverage available. We can and should use it.