Royal Dutch Shell has reported another increase in three-month profits thanks to rising oil prices.

April to June profits came in at $7.9bn (£4.0bn) on a current cost of supply basis, which is 4.6% up on the same period of 2007.

Shell said high oil and gas prices had made up for difficult conditions facing its petrol stations and refineries.

There was no mention of the effects of the four day strike by tanker drivers that disrupted supplies in June.

The drivers eventually accepted a 14% rise in pay over two years.

“Good operating performance, combined with increased oil and gas prices, offset the impact of weaker downstream conditions,” said Jeroen van der Veer, chief executive of Royal Dutch Shell.

Downstream trading includes activities such as marketing, petrol stations and refineries.

The Anglo-Dutch company is the world’s second largest publicly owned energy company by stock market value.

News reported by The BBC

Oil prices have rebounded after the US said petrol stockpiles had fallen unexpectedly last week.

US light, sweet crude settled up $4.58 at $126.77 a barrel after falling to a near three month low on Tuesday. London Brent crude rose $4.39 to $127.10.

Petrol supplies shrank by 3.5 million barrels, the US Energy Information Administration said. Analysts had expected a 200,000 barrel gain.

Oil has plunged steeply from the record $147.27 hit on 11 July.

Currency factor

The fall – which saw oil almost slide to $120 this week – has been seen by analysts as a response to a strengthening US dollar and signs of weaker demand for crude.

The dollar, which offers an alternative investment to oil and often dictates the way it moves, hit a one-month high.

In previous months, oil prices have rallied to record levels partly because some investors were looking to protect themselves from a weakening US currency.

Another factor helping to cut oil prices in recent weeks has been on the supply side, where there were indications that tensions were easing between oil-producer Iran and the US over its nuclear programme.

This reduced fears that the supply of crude oil from Iran could be interrupted.

But on Wednesday, Iran said that it would continue its nuclear path.

Western powers had given Tehran two weeks from 19 July to respond to an offer of holding off more UN sanctions if Iran froze expansion of its nuclear work.

News reported by The BBC

Oil prices have continued to fall, sliding from their record highs earlier this month and hitting some of their lowest levels since the start of June.

Traders said fears had eased that Hurricane Dolly would damage oil and gas supplies. There were also signs that US demand may be dwindling.

US light crude fell 2.11 cents to $126.31 a barrel, down from its record high of more than $147 on 11 July.

On Tuesday, prices fell to $125.63 in intraday trading before rallying.

Meanwhile, on Wednesday the price of Brent crude slipped $2.11 to $127.44 a barrel, after falling more than $1 earlier in the session.

Dolly spares production

There was relief in the market that the approaching Hurricane Dolly would not have a big impact on oil and gas production.

The US Minerals Management Service announced earlier on Tuesday that only 5% of oil and gas production in the US had been shut down.

“Oil is traded on futures markets, making it vulnerable to speculation that can move prices as much as $5 a barrel in a day”

“Dolly is not going to hit major production,” said Jonathan Kornafel of Hudson Capital Energy.

Hurricane Dolly was expected to make landfall well away from important offshore platforms.

Mr Kornafel added that gains in the strength of the US dollar had also helped to push down the price of oil.

Meanwhile, the euro slipped to $1.5755 in European trade, down from $1.5788 late in New York on Tuesday. The pound was flat at $1.9922, while the dollar rose to 107.80 Japanese yen from 107.21 yen late on Tuesday.

‘Slower growth’

Oil prices were still below $100 a barrel at the turn of the year, and despite the recent gains the price of crude is up almost 30% this year.

Prices are also more than six times higher than in 2002, driven partly by demand from booming Asian economies in China and India.

The economic slowdown in the US is a key factor behind the drop in oil prices, say dealers.

“The decline in oil prices reflects concerns that slower economic growth in the US and high oil prices are crimping oil demand,” said David Moore, commodity strategist at Commonwealth Bank of Australia.

Data due later on Wednesday from the US Energy Information Administration is expected to show stocks of crude have fallen in the past month.

News reported by The BBC

Oil prices have fallen to a six-week low as US energy demand fell and a hurricane in the Gulf of Mexico appeared to be missing oil facilities.

US light sweet crude fell as low as $125.63 a barrel, well off its 11 July peak above $147 a barrel.

Petrol consumption in the US is 2.2% below last year’s levels, according to a MasterCard survey, suggesting that higher prices are hitting demand.

But oil prices are still almost 30% above their level at the start of 2008.

$20 decline

London Brent crude fell $3.23 to $129.38 a barrel on Tuesday.

“We’ve now seen more than a $20 decline in the crude oil market from the highs and this suggests that we’ve seen enough of a shift in the supply and demand balance on a larger scale to cap the market,” said Tim Evans, energy analyst for Citi Futures Perspective.

There was relief in the market that the approaching Hurricane Dolly would not have a big impact on oil and gas production.

The US Minerals Management Service announced earlier on Tuesday that only 5% of oil and gas production in the US had been shut down.

The dollar strengthening against the euro also put pressure on oil prices as crude has been used as a hedge against the weakening US currency.

News reported by The BBC

Saudi Arabia will increase its oil production by 200,000 barrels a day next month, its oil minister has told the United Nations.

The news was announced after UN Secretary General Ban Ki-Moon met Saudi Oil Minister Ali al-Naimi in Jeddah during a one-day visit on Sunday.

Last month, the Kingdom increased its production by 300,000 barrels a day in an attempt to bring down high prices.

It argues soaring prices are caused by speculators rather than oil shortages.

Oil prices fell by almost $2 on Friday after reports that Saudi Arabia might boost oil production. US light, sweet crude was trading at $134.86 in New York.

Speculative factors

After an earlier meeting with the Kingdom’s King Abdullah, Mr Ban said Saudi Arabia, the world’s biggest oil producer, viewed current prices as “abnormally high”.

“He [King Abdullah] acknowledged that the current oil prices are abnormally high due to speculative factors and some other national government policies,” Mr Ban said.

“He is willing to what he can to [bring] the price of oil to adequate levels.”

On Friday, the Saudi oil minister said current elevated oil prices – which hit a record high of more than $139 (£71) a barrel last week – were unjustified.

Oil minister Ali al-Naimi said a meeting of oil exporters and importers to be held in Jeddah later this month would seek a solution to the unprecedented high prices, the Saudi state news agency said.

News reported by BBC