Oil prices climb back from earlier losses as dust settles on Donald Trump win

Francesca Washtell
Follow Francesca
Kuwait Promises To Increase Oil Production In Case  Of War
Brent crude is testing $46 this afternoon as global markets settle from Trump's win (Source: Getty)

Oil prices have recouped earlier losses as global markets adjusted to Donald Trump's election as the 45th US president.

Global benchmark Brent crude was trading up 0.04 per cent, or two cents, to $46.06 a barrel in the early afternoon UK time.

Prices fluctuated around four per cent between $44.40, the lowest level since mid-August, before the final result was announced and $46.50 before settling at around $46.

Read more: Precious metal firms storm to the top of the FTSE following Trump win

US benchmark West Texas Intermediate crude was trading flat at $44.98, though its day range swung from between $43.07 and $45.35.

As has happened with global markets, oil prices have recovered from an initial, Brexit-like shock reaction as polls were still being counted and investors adjusted to a surprise win for the outsider Republican candidate.

The FTSE 100 was trading down 0.2 per cent to 6,289.41 shortly before 1pm.

Read more: Pharma firm share prices are jumping on Trump's win. Here's why

Although gold prices, dollar foreign exchange rates and bitcoin all spiked before Clinton conceded the result, global markets broadly settled when Trump gave his first, conciliatory speech as US leader.

Analysts said Trump's victory may have some implications supportive of oil prices, as in the past he has criticised the West's nuclear deal with Iran, which has allowed it to sharply boost its crude exports this year.

"There are a lot of unknowns about what will be the Trump position in the geopolitics of the Middle East," said Olivier Jakob, analyst at consultancy Petromatrix.

Read more: Asian markets slide as Donald Trump looks set for victory

"President Obama from the start of his election worked towards a detente with Iran and we can't be sure that President Trump will continue in the same direction."

Oil prices are still less than half their levels of mid-2014, weighed by a global supply glut, and Brent crude has not risen back above $50 since inventory data in late October showed a giant rise in US stockpiles.

Related articles