At least some people are happy with the oil prices…
Royal Dutch Shell reports a record high profit in the second quarter of 2008. Last year the profit was 8.67 billion dollars in that period, this year it’s 11.56 billion dollars. The jump is caused by the high oil prices and the weak dollar. The production is actually lower compared to the same period last year, Shell produced 6% less crude oil.Â
Analysts predict for months now the oil price will go down to $80 – $100 per barrel by the end of the year, earlier this week OPEC boss Chakib Khelil said the price might go down even a bit more, to a level of $70 per barrel. But Shell thinks the floor price is higher, $110 per barrel. We have to wait and see who is right.
At least some people are happy with the high oil prices we’ve seen the last months…
hahah – funny pic found with this one….
But yeah – wierd one uh….. if ya also look at the profit of BP – announced yesterday….
And in Holland they keep saying “the gasprices are this high because of the tax”….
uh….and probably because you are making a percentage profit – instead of a solic 5 cents a liter…..
Yes, when the price of crude goes up, the profits go up accordingly. Still, the tax does make the biggest difference between what the oil company makes and what we pay when we fill up our car. Shell produced in that quarter about 280 million barrels, so the profit per barrel is just over $41. One barrel equals 159 litres, so the profit is only $0.26 per litre.
In addition, due to Oil being dollar denominated, as the dollar weakens, Oil prices should increase by relatively the same percentage. Randall Opec