Thu Oct 25, 2007 7:53 AM ET
By Alex Lawler
LONDON, Oct 25 (Reuters) – Royal Dutch Shell Plc’s
The comments are the first from an executive of a Western oil company agreeing with the view of the OPEC exporters’ group that oil’s surge to a record peak largely reflects speculative trading, not supply shortages.
“The price seems to be driven by some speculation and also has a political premium in it, rather than actually some of the fundamental drivers,” Shell CFO Peter Voser said at a news conference.
Earlier on Thursday, Brent crude hit an all-time high of $86.28 a barrel after a decline in inventories of crude in the United States renewed fears of a supply crunch during winter, when demand peaks.
Voser, by contrast, said oil inventories were sufficient and a drop in the profit margins from turning crude oil into usable fuels such as gasoline also pointed to ample supply. “We find it hard to explain the current prices because at the end of the day you do not see anyone queuing for fuels and nor are there any physical shortages,” he said.
“Crude inventories look well supplied and refining margins have been lowered, which is an indication of a well supplied market.”
In addition, assaults by Turkish troops on Kurdish separatists in northern Iraq have added to tension in the Middle East, source of almost a third of the world’s oil.
Voser was speaking after Shell reported an 8 percent drop in third-quarter profit as oil and gas production and refining margins fell, but the underlying result beat all forecasts. [nL25185605]
Others in the industry, such as the U.S. Energy Information Administration, argue that the oil market is tight and that the Organization of Petroleum Exporting Countries needs to pump more oil.
OPEC, source of more than a third of the world’s oil, is due to raise supply by 500,000 barrels per day next month in a gesture to consumer nations worried about the economic impact of record prices.
Voser noted that a drop in the value of the dollar, the currency in which oil is traded, had softened the impact of record oil prices on some consuemrs.
“The dollar is relatively weak and this does shield some regions such as Europe from too-high prices.”
© Reuters 2007. All rights reserved.
Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
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A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
