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Abstract

The recent crude oil production and price wars have revived the debate on production restrictions as instruments for crude oil price stabilization. This debate is related to the broader attempt at crafting appropriate regulations for trade in energy goods. While the Organization of Petroleum Exporting Countries (OPEC) and OPEC+ countries rely on production restrictions to ensure favourable crude oil prices, this approach raises critical questions in terms of its compliance with World Trade Organization (WTO) Agreements. Answers to these questions are important in understanding the tradability of crude oil in situ, securing global crude oil supply, fine-tuning the legal framework for cross-border oil and gas pipelines, regulating oil consumption subsidies and keeping the environmental conservation discourse on track. This article explores answers to these questions.

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