In response to a flood of crude oil imports, independent American oil producers will ask the U.S. government this week to investigate for the first time alleged crude oil dumping in the U.S. by foreign suppliers. It's unclear if the petition, to be filed as early as today, will be successful.
The oil producers group, Oklahoma-based Save Domestic Oil, contends that Saudi Arabia, Mexico, Venezuela, Kuwait, Iraq and Nigeria are selling oil to U.S. customers at prices below the cost of production. The group wants the Commerce Department and the U.S. International Trade Commission to review the six countries' crude oil exports to the U.S. from the second quarter of 1998 through the first quarter of this year--just before oil prices began to rise after a prolonged slump.
The targeted countries have denied the dumping allegations, arguing that because they are so dependent on oil revenue it would not make sense to dump oil in the U.S market and fuel the decline in oil prices.