Chesapeake Energy Corporation (NYSE:CHK): Oil prices recovered ground on Thursday

Chesapeake Energy Corporation (NYSE:CHK), after opening its shares at the price of $7.20, dropped -3.93% to close at $7.08 for the day. The stock moved on a traded volume of 67,652,606 shares, in comparison to 56,491,954 shares of average trading volume.

The 52-week range for the stock is $1.50 and $8.20 and during the previous trading session the stock touched its highest price at $7.44. Its introductory price for the day was $7.20. The stock’s current distance from 20-Day Simple Moving Average (SMA20) is 3.74% where (SMA50) and (SMA200) are 11.26% and 29.43% respectively.

The 29 analysts offering 12-month price forecasts for Chesapeake Energy have a median target of 7.50, with a high estimate of 11.00 and a low estimate of 2.00. The median estimate represents a +5.93% increase from the last price of 7.08.

The current consensus among 35 polled investment analysts is to hold stock in Chesapeake Energy. This rating has held steady since December, when it was unchanged from a hold rating.

Oil prices recovered ground on Thursday after sharp falls in the wake of the U.S. interest rate rise as investors anticipated a tighter market in 2017 due to planned output cuts led by OPEC and Russia. According to Reuters

The dollar rose to a 14-year high against a basket of other currencies after the U.S. Federal Reserve raised rates for the first time in a year on Wednesday.

A stronger dollar, in which oil is traded, tends to hit crude demand as it makes fuel purchases more expensive for users of other currencies.

North Sea Brent crude oil was up 45 cents at $54.35 a barrel by 1030 GMT. U.S. light crude oil was up 20 cents at $51.24 per barrel.

“We got sold off because of the strong dollar, but any weakness should be temporary,” said Tamas Varga, senior market analyst at brokerage PVM Oil Associates in London.

The Organization of the Petroleum Exporting Countries and other producers led by Russia have promised to cut production by almost 1.8 million barrels per day (bpd) in an attempt to clear a global oversupply that has depressed prices for more than two years.

ANZ bank said on Thursday oil markets would move into a substantial deficit in the first quarter of 2017 if OPEC and other producers reduced output as promised.

Crude prices received some support from reports of falling U.S. crude inventories. Reuters Report

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