Oil futures briefly traded below $90 a barrel today after the weekly inventory report showed an unexpected increase in inventories. Analysts surveyed by Dow Jones were expected an increase of 300,000 but the report showed an increase of 4.3 million barrels which surprised many traders that we spoke to on the floor.

News regarding the U.S. economy has been the main driver behind the drop in crude prices but today, prices were affected by the inventory report and by some analysts’ statements concerning the forecast of world oil consumption for 2008. Many traders now believe that the forecast will be slashed sometime soon.

Crude oil prices were also under pressure today after the Secretary-General of OPEC said the group may move more oil into the market if the market conditions require more oil over the near term.