Oil prices, which fell sharply on Tuesday, rebounded to a new high of $94 a barrel today after news of an unexpected drop in US inventories. In New York, December West Texas Intermediate (WTI), which had set a new record on Monday of $93.80, rose to $94. Whilst in London, December Brent was $3.10 higher at $90.54 a barrel. US crude inventories fell by an unexpected 3.9m barrels last week, against market expectations for a rise of 0.6m barrels. Much of the fall occurred at Cushing Oklahoma, the delivery point for WTI, where strong demand pushed stocks down by 3.1m barrels to 15.1m barrels – their lowest level since the disruption caused by hurricane Katrina in October 2005.