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Rising prices boost Shell and BP | |
(20 minutes later) | |
Oil firms Royal Dutch Shell and BP have seen first quarter profits boom thanks to the rising price of oil, which is close to $120 a barrel. | |
Shell made profits of $7.8bn (£3.9bn) in the first three months of the year, up from $6.9bn a year ago. | |
And rival BP saw its profits rise 48% to $6.6bn (£3.31bn), from $4.4bn. | |
The figures come after Anglo-Dutch firm Shell reported annual profits in January of $27.56bn (£13.9bn), a record for a UK-listed company. | |
Shell chief executive Jeroen van der Veer said he would continue to grow the firm after a "good operating performance". | |
Shell shares are listed in the UK and the Netherlands, while the company's headquarters are in The Hague. | Shell shares are listed in the UK and the Netherlands, while the company's headquarters are in The Hague. |
The quarterly results come as a strike by oil workers at the Grangemouth refinery in Scotland came to an end. | |
The stoppage had disrupted fuel supplies and halted much of the UK's North Sea oil production. | |
'Oil scarcity' | |
Simon Wardell, oil analyst at Global Insight, said the rising price of petrol was "predominantly down to high oil prices". | |
"Oil prices are high because of the weak dollar and because reserves are under pressure, the spare capacity margin is narrowing, Opec does not have a great deal more oil to pump," he said. | "Oil prices are high because of the weak dollar and because reserves are under pressure, the spare capacity margin is narrowing, Opec does not have a great deal more oil to pump," he said. |
"That scarcity is reflected in the high oil prices." | "That scarcity is reflected in the high oil prices." |
But he said that oil firms could not sit back and just watch the profits flow in. | But he said that oil firms could not sit back and just watch the profits flow in. |
"Oil firms have to think about the long-term investment, and what prices might be in the future." | "Oil firms have to think about the long-term investment, and what prices might be in the future." |