Oil prices continue bleeding ahead of US rig data

Oil futures deepened their losses in American trade for the second straight day, on concerns about Chinese demand after its central bank governor warned from optimism towards economic growth, with the losses curbed by crisis in Iraq and the lessened concerns about US oversupply, as traders await US rig count data later today. 

As of 12:35 GMT, US crude fell to $51.10 a barrel from the opening of $51.58, with an intraday high at $51.77, and a low at $50.86. 

Brent slid to $56.95 a barrel from the opening of $57.24, with an intraday high at $57.53, and a low at $56.59. 

US crude shed 0.9% yesterday, the first loss in five days, while Brent declined 1.6% on profit-taking after marking three-week highs. 

Earlier reports said that crude production from several oil fields in Iraq's Kirkuk is still disrupted, cutting the country's production by 275 thousand bpd. 

Internal strife has flared between the Iraqi federal government and the Kurdistan regional government after the region voted for independence on September 25, with the federal government moving into to militarily seize parts of the region. 

On the same note, Goldman Sachs said this week that violence in northern Iraq is one of the major geopolitical risks facing the oil markets, in addition to tensions between US and Iran. 

In the US, the EIA reported a drop in crude inventories for the fourth week in a row, with a total 15% drop so far since March, while production also fell 11% last week to the lowest since June 2014 at 8.4 million bpd. 

Later today, US oil services company Baker Hughes will release data on the US oil rig count, after falling by 5 last week to a total of 743 rigs, the lowest since June 9.