Shell quarterly profit hit by falling oil prices

Oil giant Royal Dutch Shell has followed rival firm BP and announced a sharp fall in quarterly profits as oil prices fall and demand weakens.

Profit for the first quarter plunged to $3.3 billion (£2.24 billion), down 58% compared with the same period in 2008 and represents a 31% fall compared with the fourth quarter of last year.

Oil reached a high of $147 a barrel in July 2008 but dropped significantly to $40 towards the end of 2008 and is currently around the $50 a barrel mark.

Yesterday, BP reported that net profit for the first quarter was $2.4 billion (£1.64 billion), a fall of 62% compared with the same period in 2008.

Shell’s chief executive, Jeroen van der Veer, described the current business environment as “challenging” and said the group is taking a “prudent approach to this downturn.“

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