Shell reaps $1.2b, blames oil speculators

SHELL Australia believes record petrol prices are here to stay because of speculators and traders in “paper barrels” of oil aggravating real-world price increases flowing from the structural increase in global demand caused by the booming economies of China and India.

Recently installed chairman and a 38-year veteran of the company, Russell Caplan, made the call in Melbourne at the release yesterday of the group’s bumper $1.26 billion profit result for 2005, up from $751.5 million in 2004. It was a feature of the result, reported on a before interest and tax basis, that the contribution from the group’s refining and marketing business increased sixfold to $300 million.

Sydney Morning Herald.