Washington (Platts)--5May2008

As Senate Democrats prepare to release a comprehensive bill this week
aimed at reducing gasoline prices, one member of their caucus touted his own
bill Monday that could lead the US to take action against OPEC for alleged
violation of international trade rules by conspiring to manipulate the price
of oil.

"While OPEC and the oil companies have seen record profits, American
families are paying record gas(oline) prices at the pump," said Senator Frank
Lautenberg, Democrat-New Jersey, in a statement. "The...actions of OPEC
nations have gone on for too long, and it is time to stand up to this
cartel and protect the interests of the American people."

The bill, which was introduced late last week, would require US trade
negotiators to meet with negotiators from the eight nations that are members
of both OPEC and the World Trade Organization to discuss the removal of OPEC
restrictions on oil exports.

Nations that belong to both OPEC and WTO include Ecuador, Indonesia,
Kuwait, Nigeria, Qatar, Saudi Arabia, United Arab Emirates and Venezuela.
OPEC members Iraq, Iran, Libya and Algeria are seeking admission into the WTO.

If bilateral negotiations fail, the bill would require the US to request
that the WTO adjudicate whether OPEC is acting illegally to limit oil exports.
If the trade organization finds for the US, the US could impose trade
restrictions on OPEC nations, according to the bill.

Lautenberg's bill has the support of some influential Senate Democrats,
including Armed Services Committee Chairman Carl Levin of Michigan and Senator
Byron Dorgan of North Dakota. Senate leadership staff did not immediately
respond to an inquiry as to whether Lautenberg's proposal could be part of
the Democrats' gasoline bill.

--Jean Chemnick, jean_chemnick@platts.com