Higher oil prices fuel BP fourth-quarter profits

Energy giant BP today delivered its first quarter of growth for over a year after a 49 per cent surge in profits fuelled by higher…

Energy giant BP today delivered its first quarter of growth for over a year after a 49 per cent surge in profits fuelled by higher oil and gas prices.

BP said headline profits in the three months to December 31st were $2.63 billion compared with $1.77 billion a year earlier.

The profits come after production shortages in Venezuela and concerns over the Middle East drove Brent crude prices as high as 27 dollars a barrel in the fourth quarter.

Chief executive Lord Browne said: "The prospect for crude oil prices is particularly uncertain and will be affected by such issues as the timing and extent of developments in Venezuela and Iraq and global economic growth".

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His comments came as BP announced a "major strategic step" in Russia after agreeing to combine its interests there with Alfa Group and Access-Renova.

The move will create the country's third-largest oil and gas business, producing around 1.2 million barrels of oil a day and a retail network of over 2,100 sites in Russia and the Ukraine.

PA