Oil Reverses Losses After Surprise US Election Result

Oil reversed early losses of almost 4% to trade above $46 a barrel on Wednesday, as the market recovered from an initial Brexit-like reaction to Donald Trump's surprise victory in the US presidential election.

Brent crude was up seven cents at $46.11 a barrel after falling to $44.40, the lowest since Aug. 11. US crude gained 1 cent to $44.99, Reuters reported. The result sparked a flight from risky assets in a move analysts compared to June's referendum in which Britons voted to leave the European Union.

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

Oil prices are less than half of their level of mid-2014, pressured by excess supplies. In an attempt to boost prices, the Organization of Petroleum Exporting Countries agreed in September to cut output, although investor doubts have grown that it will be able to implement the deal at its next meeting on Nov. 30.

A report by industry group the American Petroleum Institute showed US crude inventories rising by 4.4 million barrels last week, weighing on oil. That would be more than the 1.3-million-barrel increase analysts expected.