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Pump prices for fuel in Belize—and particularly the price of diesel and kerosene—hit a new record this week, even as the world’s biggest oil companies were setting their own record in profits, creaming off even more billions on account of exorbitant oil prices.
Business Week today reported that Exxon Mobil—the world’s largest publicly traded oil company—had made a new record of $11.68 billion (with a “b”) in profits for the second quarter of the year, up 14% from the same time last year. The company was said to beat its own record for the highest profits ever recorded by a United States company.
Another big company was making even more billions. Royal Dutch Shell, Europe’s largest company, was reported by the New York Times, in an article released today but dated August 1, as having earned just as much as Exxon - $11.56 billion, up from the $8.76 billion it had reported the previous quarter.
The record profits on oil sales are in spite of fallen production, because prices are so much better—for the companies, not for consumers—than they were last year.
Numerous international reports have pointed out that the high cost of oil has been the underlying factor to rising cost of living, and hence, the severe adversity and starvation being faced by millions in struggling countries of Africa and the Caribbean.
Australia’s Herald Sun reported Wednesday that OPEC president, Chakib Khelil, had said in Jakarta the day before that oil prices above US$120 a barrel are “abnormal” and could fall to about US$78 under the right circumstances.
But guess what’s driving costs? The news media further quoted Khelil as saying that, “If the dollar continues to strengthen and the political situation (regarding Iran) improves, then the long-term prices will be about US$78,” adding that the market was well supplied with oil.
Some social activists and politicians are of the view that windfall taxes should be imposed on oil companies to reclaim a portion of the massive profits being earned by these big oil companies.
Amandala Press
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