Investing.com - Crude oil prices edged higher on Friday in Asia with sentiment underpinned by an ongoing rebalance of supply and demand and geopolitical tensions over rumblings for Kurdish independence in Iraq.

As well, investors await the Baker Hughes rig count later on Friday for the weekly update on the number of U.S. rigs drilling for oil.

On the New York Mercantile Exchange crude futures for November delivery rose 0.04% to $51.58 a barrel, while on London's Intercontinental Exchange, Brent edged up 0.02% to $57.27 a barrel.

Overnight, crude oil prices settled lower on Thursday as traders unwound some of their bullish bets on crude but sentiment on oil remained positive following inventory data on Wednesday showing a surprise draw in crude oil supplies.

Crude oil prices fell as investors appeared to take profit on the recent rally which has seen oil prices hit multi-month highs on expectations that higher global demand would nudge the market closer toward rebalancing.

Geopolitical tensions, meanwhile, limited downside momentum as Turkey vowed to deal only with the Iraqi government on crude oil exports after Iraqi Kurdistan voted overwhelmingly in favour of independence earlier this week. The pipeline linking northern Iraq to the Turkish port of Ceyhan carries 500,000-600,000 barrels of crude per day.

Crude oil prices are on track extended their weekly winning streak to four weeks following strong gains earlier this week on the back of data showing weekly crude exports jumped to their highest on record while refinery activity showed signs of stabilizing.

Inventories of U.S. crude fell by roughly 1.9m barrels in the week ended Sept. 22, the Energy Information Agency reported Wednesday, confounding expectations of a rise of 3.4m barrels.

The widening spread between brent and crude oil prices reached $7 earlier this week, prompted a sharp rise in demand for crude, spurring an increase in exports. The U.S exported a record 1.5m barrels per day of crude oil last week, the EIA said Wednesday.

The recent uptick in U.S. oil prices - above $50 a barrel – has spurred drilling activity, however, raising investor expectations of an uptick in shale output, which could weigh on upside momentum.

Related Articles

Crude Oil Prices Edge Higher In Asia, U.S. Rig Count Ahead

Turkey raises oil threat after Iraqi Kurds back independence

Crude Oil Prices Settle Lower but Remains on Track for Weekly Gain