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| Rising prices boost Shell and BP | Rising prices boost Shell and BP |
| (2 days later) | |
| Oil firms Royal Dutch Shell and BP have made better-than-expected first-quarter profits thanks to the rising price of oil, which is close to $120 a barrel. | Oil firms Royal Dutch Shell and BP have made better-than-expected first-quarter profits 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. | 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 $6.588bn (£3.31bn), from $4.4bn. | And rival BP saw its profits rise 48% to $6.588bn (£3.31bn), from $4.4bn. |
| In January, Anglo-Dutch firm Shell reported annual profits of $27.56bn (£13.9bn) for 2007, a record for a UK-listed company. | In January, Anglo-Dutch firm Shell reported annual profits of $27.56bn (£13.9bn) for 2007, a record for a UK-listed company. |
| BP shares closed up 5.96% in London, while Royal Dutch Shell 'A' shares rose 5.26%. | BP shares closed up 5.96% in London, while Royal Dutch Shell 'A' shares rose 5.26%. |
| Price moves | Price moves |
| The quarterly results come amid increasing concern at the cost of petrol on both sides of the Atlantic. | The quarterly results come amid increasing concern at the cost of petrol on both sides of the Atlantic. |
| HAVE YOUR SAYOil company profits are justified but the governments slice of the cash we pay per litre is notPeter, Aylesbury, UKSend us your comments | HAVE YOUR SAYOil company profits are justified but the governments slice of the cash we pay per litre is notPeter, Aylesbury, UKSend us your comments |
| In the UK, average prices have now reached 109.8p a litre for unleaded petrol, equivalent to £4.99 a gallon (4.55 litres), according to the AA. | In the UK, average prices have now reached 109.8p a litre for unleaded petrol, equivalent to £4.99 a gallon (4.55 litres), according to the AA. |
| In the US, where fuel taxes are lower, the average price is now $3.60 (£1.80) for an American gallon (3.79 litres), according to the US Energy Department. | In the US, where fuel taxes are lower, the average price is now $3.60 (£1.80) for an American gallon (3.79 litres), according to the US Energy Department. |
| The results also follow a strike by oil workers at the Grangemouth refinery in Scotland, which had disrupted fuel supplies and halted much of the UK's North Sea oil production. | The results also follow a strike by oil workers at the Grangemouth refinery in Scotland, which had disrupted fuel supplies and halted much of the UK's North Sea oil production. |
| Some petrol stations in Scotland and northern England had introduced rationing or raised prices. | Some petrol stations in Scotland and northern England had introduced rationing or raised prices. |
| The price of oil prices has been rising steadily since January, when it broke through the $100-a-barrel mark. | The price of oil prices has been rising steadily since January, when it broke through the $100-a-barrel mark. |
| This week the cartel of oil producing nations, Opec, warned that prices could reach $200 a barrel. | This week the cartel of oil producing nations, Opec, warned that prices could reach $200 a barrel. |
| On Monday, US light, sweet crude hit a fresh record of $119.93 a barrel. Prices rose as traders eyed the disruption caused by the Grangemouth strike and supply problems in Nigeria following pipeline attacks. | On Monday, US light, sweet crude hit a fresh record of $119.93 a barrel. Prices rose as traders eyed the disruption caused by the Grangemouth strike and supply problems in Nigeria following pipeline attacks. |
| However, the oil price slipped to $117.64 a barrel in Asian trade on Tuesday. | However, the oil price slipped to $117.64 a barrel in Asian trade on Tuesday. |
| Difficult year | Difficult year |
| Shell chief executive Jeroen van der Veer said he would continue to grow the firm after a "good operating performance". | 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. |
| Royal Dutch Shell A sharesRoyal Dutch Shell B sharesBP shares | Royal Dutch Shell A sharesRoyal Dutch Shell B sharesBP shares |
| BP's strong figures come after 12 months of turmoil for the firm, which announced a fall in 2007's annual profits in February. At the time it also announced that it was to cut 5,000 jobs. | BP's strong figures come after 12 months of turmoil for the firm, which announced a fall in 2007's annual profits in February. At the time it also announced that it was to cut 5,000 jobs. |
| Other low points have included receiving a $50m fine for the 2005 Texas City refinery explosion in which 15 people died. | Other low points have included receiving a $50m fine for the 2005 Texas City refinery explosion in which 15 people died. |
| This was part of a larger $373m fine by the US Department of Justice for committing environmental crimes and fraud, and included a fine for price manipulation. | This was part of a larger $373m fine by the US Department of Justice for committing environmental crimes and fraud, and included a fine for price manipulation. |
| And in May last year, the company's boss, Lord Browne, resigned after lying to a court in an attempt to block stories about his private life. | And in May last year, the company's boss, Lord Browne, resigned after lying to a court in an attempt to block stories about his private life. |
| 'Oil scarcity' | 'Oil scarcity' |
| For a litre of petrol costing 108 pence, approximately 33 pence goes to the oil company, 9 pence to the retailer, 50 pence fuel duty to the Chancellor of the Exchequer, and 16 pence VAT to the chancellor. | For a litre of petrol costing 108 pence, approximately 33 pence goes to the oil company, 9 pence to the retailer, 50 pence fuel duty to the Chancellor of the Exchequer, and 16 pence VAT to the chancellor. |
| Simon Wardell, oil analyst at Global Insight, said the rising price of petrol was "predominantly down to high oil prices". | 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, there is a slim spare capacity margin - 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, there is a slim spare capacity margin - 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." |
| The earnings results come ahead of other earnings data in coming weeks from industry figures including US giants Exxon Mobil and Chevron, UK gas firm BG Group and France's Total. | The earnings results come ahead of other earnings data in coming weeks from industry figures including US giants Exxon Mobil and Chevron, UK gas firm BG Group and France's Total. |