We all put in the same parameters for BP and Shell, but BP just comes out better. The differences in management between the two groups are really beginning to show through.

The whole of the U.S. system seems to be creaking at the moment,

tight inventory levels throughout the world.

[The profit was] at the bottom of forecasts, they confirmed some production delays, and I think the market just doesn't like oils at the moment, ... Generally though, things are ticking along quite nicely for them.

The compromise could be 700,000 barrels but the actual production increase could be around 400,000. At 1 million extra barrels prices may be drawn lower but at 500,000 prices could hit $40.

supply and demand price for oil stands at around $27, so $5 to $6 (of the current price) is pure speculation. There is no demand for oil at these prices, buyers are sitting and hoping oil prices will fall, but prices could shoot up if there is a panic. There is real concern heating oil could run out.