Oil goes on roller coaster ride with Trump
Oil prices temporarily tumbled early Wednesday before paring those losses as the prospect of Donald Trump's ascendancy to the White House sank in for the global commodity.
The price of West Texas Intermediate crude oil, the U.S. benchmark, was down 2.6% to $43.80 at 12:49 a.m. ET. but was down only 13 cents to $44.85 at 6:21 a.m.
The global benchmark, Brent crude, was down 2.3% to $44.98 after midnight but recovered and bounced 6 cents higher to $46.10 at 6:21 a.m.
Concerns about Trump's possible election as the 45th president of the United States took a toll on the commodity in the early going, as votes were were being tabulated.
Dow futures plunged more than 800 points at one point as investors who widely believed that Hillary Clinton would win the race internalized the election results. Any significant headwinds for the economy typically undermine oil prices.
But the market pain eased slightly in the early morning hours after Clinton conceded the election.
The prospect of a presidential administration that's boldly pro-fossil fuels, as Trump has proclaimed, was also a factor as prices endured a roller coaster ride.
"Mr. Trump has vowed to lead a fossil fuel revival to underpin job growth and has also put man-made climate change denial at the forefront of his energy policy," JBC Energy analysts said early Wednesday in a research note. But "his known policies are limited in detail."
Earlier Tuesday, the U.S. Energy Information Administration projected that Brent crude oil would average about $48 per barrel in the fourth quarter of 2016 and first quarter of 2017, with WTI trading at about $1 less next year.
As investors weigh the election results, they're also watching to see whether the Organization of the Petroleum Exporting Countries (OPEC) can solidify a tentative deal to cap production at a meeting later this month.
The commodity briefly rallied on that prospect this fall before relinquishing some of those gains as oil stocks surged.
"For now, oil prices are more likely to be driven by the prospects for an OPEC deal to curtail output than by the likely direction of US energy policy," Capital Economics said early Wednesday in a research note.
Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.