Oil slips after hitting 2018 high with market poised to tighten

Oil edged lower after closing at the highest level since October 2018 with an industry report pointing to a further draw in US crude stockpiles, adding to signs of a rapidly tightening global market.

Futures in New York traded near $75 a barrel after rising 1.6% on Tuesday. The American Petroleum Institute said crude inventories slid by more than 4 million barrels last week, according to people familiar with the data. That would be an eighth straight weekly draw, the longest run of declines since January 2018, if confirmed by government figures later on Wednesday.

Some uncertainty looms over the market, however. Indonesia posted a record number of new virus cases, while Sydney extended a lockdown as the delta variant continues to sweep the globe.