(1888PressRelease)
October 05, 2007 - Predictions that US inventory data to be released later today will show an 800,000 barrel drop in crude stocks has prompted a surge in the price of oil.
Following three days of losses, the price of oil rose above $80 a barrel today (Wednesday) as investors believe a decline in crude stocks could lead to a supply shortage this winter.
Indeed, speculative investment has seen the price of oil remain above the $80 barrier for much of the last three weeks - despite Opec's decision to raise production by 500,000 barrels per day on September 11th.
According to Hojatollah Ghanimifard, executive director of the National Iranian Oil Company, the weak dollar is also contributing to the high cost of oil.
"The price of oil is not going to drop," he told Reuters.
"(The price) is not going to change unless the dollar corrects itself."
Further analysis of the global oil market could be supplied by Aranca, an end-to-end provider of on-demand, custom investment, business and economic research.
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