Why Oil prices Decline on Monday? – Chesapeake Energy Corporation (NYSE:CHK)
At the recent trading session, Chesapeake Energy Corporation (NYSE:CHK) stocks are trading within the range of $5.72 – $5.91. The current session’s volume of 6.02M shares is lower from their average daily trading volume of 40.52M shares. A look on the firm performance, its monthly performance is -2.68% and a quarterly performance of -22.04%. The stock price is trading upbeat from its 200 days moving average with 6.05% and down from 50 days moving average with -11.94%. U.S. stocks opened rose on Monday, rising for the first time in four days, helped by gains in technology and financial stocks. The S&P 500 technology sector’s .SPLRCT 0.44 percent gain provided the biggest boost to the broader index, followed by a 0.3 percent rise in financials .SPSY.
At 9:41 a.m. ET, the Dow Jones Industrial Average .DJI was up 67 points, or 0.33 percent, at 20,520.25, the S&P 500 .SPX was up 5.07 points, or 0.22 percent, at 2,334.02 and the Nasdaq Composite .IXIC was up 17.33 points, or 0.3 percent, at 5,822.48.
The S&P 500 index showed four 52-week highs and no lows, while the Nasdaq recorded 13 highs and 11 lows.
According to Market Watch, Crude futures prices fell Monday, giving back some recent gains as analysts pointed to signs of a continued uptick in U.S. output.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in May CLK7, -0.32% fell 34 cents, or 0.6%, to $52.84 a barrel. In London, June Brent crude LCOM7, -0.23% on the ICE exchange fell 33 cents, or 0.6%, to $55.56 a barrel.
Analysts said buying was suppressed by data Thursday that showed the U.S. oil rig count rose for the 13th straight week in the week of April 13. At a total of 683, the current tally is the highest in two years. After the data Thursday, oil ended with minor gains ahead of the three-day Easter weekend.
“U.S. shale oil producers, particularly in the Permian basin, seem well convinced that they can make money at current prices and we’re in no position to argue,” Timothy Evans, a Citi Futures analyst said in a recent note. Source: Market Watch