28 April 2010

Oil Companies Post Healthy Profits

Shell, the oil company, has announced big profits for the first quarter of 2010, up by nearly 50% on last year.

The company announced its news after other oil giant BP also announced big returns for the first quarter.

According to both companies the outlook for oil in this year remains firm. Currently a barrel costs around $75 having already peaked at over $80 earlier this year.

A far cry from the end of 2008, when the commodity had sunk to severe lows; after having reached $147 in the summmer, by Christmas a barrel fetched a mere $30.

Since then oil has steadily climbed as demand has risen and global recoveries have taken place. The recent air chaos over Europe which did cause a dip in demand from air companies, has not so far had a major effect.

Meanwhile Greece has had its credit rating slashed by S& P's, down to junk status. The news has caused more euro woe on the foreign exchange market as it plunged in early trading.

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