Oil prices rose nearly 2 percent on Tuesday after news OPEC oil production has fallen sharply this month and the dollar sank. Shares of Chesapeake Energy Corporation (NYSE:CHK) stock dropped-1.63 percent on Tuesday current trading and closed at $6.36.
U.S. stocks extended losses in late morning trade on Tuesday, weighed down by technology and industrial stocks, amid disappointing earnings and weak consumer confidence data.
The selling comes a day after Wall Street suffered its worst day of 2017, as investors turned wary about the consequences of President Donald Trump’s isolationist policies such as curbing travel to the United States.
“Many technology CEOs have come out publicly against Trump’s immigration policies and it certainly hurts the sector’s access to highly qualified labor,” said Brant Houston, portfolio manager at Atlantic Trust in Denver, Colorado.
Shares of Exxon Mobil Corporation (NYSE:XOM) stock fell -0.97 percent and closed $83.98. Exxon Mobil Corporation (NYSE:XOM) boosted its 2017 capital budget on Tuesday by about 14 percent on a bet that crude prices have stabilized, but posted its lowest quarterly profit since 1999 as it took a $2 billion charge from the purchase of natural gas producer XTO Energy.
The world’s largest publicly traded oil producer wrote down more than $2 billion from its 2009 buyout of natural gas NGc1 producer XTO Energy, a deal worth roughly $30 billion at the time. The writedown is a tacit acknowledgement from Exxon that natural gas prices are not likely to rise substantially in the near future.
Wall Street traders expect oil prices to stay near their current range, between $54 and $55 per barrel, for several years and for natural gas prices to remain near their current level, about $3.13 per million cubic feet.