Royal Dutch Shell has reported a 77% increase in profit for the second quarter, propped up mainly by higher energy prices and cost cutting. The oil giant made a profit of US $8 billion, up from US $4.5 billion during the same period in 2010.

Shell, however witnesses a 2% drop in production compared to last year as the result of US $4 billion worth of asset sales. The sales are meant to help the company streamlining costs and improving operating performance.

In addition, the higher price of oil, which has been pushed up by the conflict in Libya and the Arab Spring uprisings across the Arab world in recent months, boosted revenue.

A year ago, US light sweet crude oil was trading at around US $78 a barrel. It is currently trading at about US $97 a barrel, after reaching a high of $110 at the end of April.