Oil prices surged on Monday (10 April 2017) : Chesapeake Energy Corporation (NYSE:CHK)

The stock market is driven more by earnings than by political goings-on, as we’ve learned in the past couple of weeks.

All of this is bullish for the equity market, which tends to perform better amid something it can sink its teeth into, such as an improving earnings climate or, particularly, a central-bank rate-cutting campaign.

In the first quarter, major market indexes climbed to records—including the first close over 20000 and then 21000 for the Dow Jones Industrial Average—which resulted in the average diversified U.S.-stock fund registering a healthy total return of 4.8%. However, investors are showing caution, turning again to tried-and-true bond funds, judging by the latest fund-flow statistics.

Chesapeake Energy Corporation (NYSE:CHK), after opening its shares at the price of $6.28, dropped -1.27% to close at $6.20 for the day. The stock moved on a traded volume of 32.89M shares, in comparison to 41.32M shares of average trading volume.

Brent crude futures, the international benchmark for oil prices, were at $55.47 per barrel at 0544 GMT, up 23 cents, or 0.42 percent, from their last close.

U.S. West Texas Intermediate (WTI) crude futures were up 25 cents, or 0.49 percent, at $52.49 a barrel. Oil prices surged on Monday (10 April 2017), supported by strong demand and uncertainty over the conflict in Syria, although another run-up in U.S. drilling activity kept a lid on gains.

India, which recently overtook Japan as the world’s third biggest oil importer, saw its March oil demand grow by 4.9 percent from the same month a year ago, said Sukrit Vijayakar of energy consultancy Trifecta. But for Asia overall, some of India’s growth will be offset by a 1.5 percent annual fall in Japanese oil demand over the next five years. According to Reuters

U.S. bank Goldman Sachs said after the rig data release that year-on-year U.S. oil production “would rise by 215,000 barrels per day in 2017” once a backlog of production waiting to be brought back online was taken into account.

The soaring U.S. output contrasts with a supply cut led by the Organization of the Petroleum Exporting Countries (OPEC), which hopes to prop up prices by reducing supplies in the first half of 2017 – and maybe beyond.

“Reduced OPEC volumes and stronger U.S. output will result in a deeper discount for U.S. crude and support greater exports from the U.S. to Asia over the coming months,” BMI Research said. It added, though, that in terms of overall volumes, “the U.S. will remain a small player in Asia as OPEC actively protects its market share.” Reuters update

The 52-week range for the stock is $3.56 and $8.20 and during the previous trading session the stock touched its highest price at $6.32. Its introductory price for the day was $6.28. The stock’s current distance from 20-Day Simple Moving Average (SMA20) is 12.47% where (SMA50) and (SMA200) are 6.65% and 2.26% respectively.

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