BP reports £3.2bn profit but production falls 11%

Higher oil prices, driven up in the period by political unrest in the Middle East and North Africa, helped offset the costs of the Deepwater Horizon disaster Oil giant BP said it had benefited from higher oil prices as it reported quarterly profits of $5.3bn (£3.2bn). The British firm made a loss of £16.9bn in the same period a year ago – but this was in the aftermath of the Gulf of Mexico oil spill disaster . The group said production was 11% lower in the period following suspension of drilling in the Gulf of Mexico and $25bn of asset sales. But this was offset by higher oil prices, driven up in the period by political unrest in the Middle East and North Africa, as well as higher refining margins – the difference between the value of crude oil and the products it is used for. The Gulf of Mexico clean-up continued in the quarter – with £6.8bn now paid out in claims and in government payments to fund economic and environmental restoration. Oil prices began to climb early this year as political turmoil spread from Tunisia through Egypt and on to Libya. Supplies were constricted by civil war in Libya, which pushed prices even higher. BP said the average cost of Brent crude in the period was $117.04 a barrel – a 50% increase compared with $78.24 in the same period last year. The company also said it was benefiting from improved refining margins – up to 13% from 11%. The improved margins come as the cost of petrol at the pumps hit 135.6p a litre in June, according to the Office for National Statistics. BP BP oil spill United States Oil guardian.co.uk

Posted by on July 26, 2011. Filed under News, Politics, World News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.