Oil producers unveil higher profits

The gusher of good results from oil companies continues with Italy’s Eni reporting a 22.7% in second quarter profit while in the US Chevron’s profit was up 18%. It has been the same story this week from Exxon Mobil, BP, Shell and ConocoPhilips with the conflict in the Middle East helping boost prices.

Oil trader Anthony Grisanti in New York said if the fighting spreads prices will rise rapidly: “I’m talking about crude oil, probably 90 to 100 dollars a barrel, definitely if you get Iran involved in this, we’ve got major problems.”

In the US particularly the record profits have drawn criticism from consumer groups and politicians complaining people are paying too much for fuel.

The companies respond that supply and demand sets the price and much of their profits go on searching for new sources of oil.

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