Oil edges higher after shock Trump victory for U.S. presidency

Wed Nov 9, 2016 3:25pm EST
 
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By Scott DiSavino

NEW YORK (Reuters) - Oil prices edged higher on Wednesday as stocks and the dollar bounced back from a huge early slide following Donald Trump's surprise victory in the U.S. presidential election.

Crude oil prices tumbled as much as 4.0 percent to near $43 a barrel, a near two-month low, late Tuesday night as it became clear U.S. voters picked Trump as their next president.

That selloff was part of a broad-based market reaction where investors late Tuesday night fled risky assets such as stocks .DJI and the dollar .DXY which have since recovered in value. [MKTS/GLOB]

Brent LCOc1 futures rose 32 cents, or 0.7 percent, to settle at $46.36 a barrel, while U.S. crude CLc1 gained 29 cents, or 0.6 percent, to settle at $45.27 per barrel.

"If you just look at today's close versus yesterday's close, not that much happened. But, there was a near $2 a barrel roller coaster ride in the middle," said James Williams, president of energy consultant WTRG Economics in Arkansas.

"Oil markets started to recover from their overnight lows once it became clear that Trump had won the election," Williams noted.

With the Trump victory, some analysts said there were supportive factors for oil prices such as a potential shift in U.S. policy toward Iran.

Trump has criticized the West's nuclear deal with Iran, an accord that has allowed Tehran to increase crude oil exports sharply this year. Iran said Trump should stay committed to the deal.   Continued...

 
Gas prices are displayed on a pump at a Mobil gas station in the Brooklyn borough of New York, U.S., February 3, 2016.      REUTERS/Brendan McDermid/File Photo