Oil touches highest level since Oct 2018 on warning about supply crunch

Oil touches highest level since Oct 2018 on warning about supply crunch

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 per cent 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. US oil demand has soared to new heights as the nation rebounds from the pandemic, with gasoline and diesel consumption returning to pre-virus levels. A surge in petroleum use for products such as plastic, asphalt, lubricants and other industrial needs is also propelling the recovery. Oil has rallied more than 50 per cent this year as the vaccine rollout boosts demand in key economies such as the US, with the International Energy Agency warning that the market will tighten significantly if OPEC+ doesn't resolve a standoff and lift production. Talks broke down earlier this month and it's looking increasingly likely that the alliance