The American Petroleum Institute, which represents the large, international oil companies, has pledged to fight it along every step, hiring a lawyer who specializes in bringing anti-dumping cases. More than 100 organizations, companies and industry groups from airlines and truckers to farmers are opposed, arguing a favorable ruling would harm consumers by raising oil prices. Mexico has delayed plans to phase out its tariff on U.S. natural gas imports until the anti-dumping case is resolved. Venezuela has denied the charge it is selling oil at below market value. Some oil industry experts also are concerned about the fate of recent efforts to promote greater U.S. industry involvement in Saudi oil development.
Many economists say the nature of world oil markets argues against the petition.
If Saudi Arabia faces a high tariff in the United States, it will sell its oil elsewhere and oil from another country may come to the United States, these experts say. Further, some U.S. refineries are geared to handling certain products coming from Mexico and Venezuela and a shift in sources could require additional costs, raising prices, the experts say. While the oilmen's petition is viewed as a long shot, trade experts say the anti-dumping provision is heavily stacked in favor of domestic companies and a favorable ruling is possible. The Clinton administration would prefer this case go away. Save Domestic Oil Inc. Petition is supported by many other independents, but opposed by the major international oil companies.