Investing.com - Oil prices were higher during North American morning hours on Wednesday, recovering from earlier losses as market turmoil eased after Donald Trump issued upbeat remarks in his first speech after winning the presidency.
Crude oil for December delivery on the New York Mercantile Exchange inched up 26 cents, or 0.58%, to $45.24 a barrel by 6:05AM ET (11:05GMT). The contract tumbled by more than 4% to $43.07 earlier, the lowest since September 20.
Elsewhere, Brent oil for January delivery on the ICE Futures Exchange in London rose 32 cents, or 0.7%, to $46.37 a barrel. It sank 4% to a daily low of $45.60 overnight, a level not seen since August 11.
Oil plunged along with other risk-sensitive assets overnight as Donald Trump shocked financial markets by winning the U.S. presidential election.
But sentiment recovered after Trump gave a victory speech in which he said he would seek common ground and not hostility, contrasting the heated words he has become famous for at campaign rallies.
Meanwhile, market players awaited fresh weekly information on U.S. stockpiles of crude and refined products later Wednesday. The U.S. Energy Information Administration will release its weekly report on oil supplies at 10:30AM ET (14:30GMT), amid analyst expectations for an increase of 1.3 million barrels.
Gasoline inventories are expected to fall by 1.0 million barrels while stocks of distillates, which include heating oil and diesel, are forecast to drop by 2.1 million barrels.
After markets closed Tuesday, the American Petroleum Institute said that U.S. oil inventories increased by 4.4 million barrels in the week ended November 4, well above market expectations.
The API report also showed a decline of 3.6 million barrels in gasoline stocks, while distillates showed a drop of 4.3 million barrels on the week.
Meanwhile, oil traders continued to weigh prospects of a coordinated production cut among major global oil producers.
OPEC reached an agreement to cap output to a range of 32.5 million to 33.0 million barrels per day in talks held in Algeria in late September. However, the 14-member oil group said it won’t finalize details on individual output quotas until its next official meeting in Vienna on November 30.
The possibility that producers could walk away empty-handed from the November meeting looms large after Iraq, Iran, Nigeria and Libya all signaled they might not take part in the proposed production cut deal. Russia’s unclear stance is also fueling uncertainty.