Shell sits on $17b profit

Oil giant Royal Dutch Shell will this week report a record profit of about US$13.7 billion ($17.2 billion) for the first half of the year - equal to more than $1100 a second - as soaring oil prices boost its coffers.

The 10 per cent profit rise comes as Goldman Sachs warn that oil prices could rise to US$95 a barrel compared with last week's US$77. This is partly due to a surge in demand from China and other emerging markets.

The International Energy Agency last week warned of shortages in supply until 2012.

While rival BP is expected to suffer a drop in profits due to falls in production, it will still make close to US$9 billion in the first six months of the year.

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