Chesapeake Energy Corporation (NYSE:CHK) fell -0.33% and to closed at $6.08 on Feb 22 Pre-market: 6.04 -0.04 (-0.66%). Oil prices held near multi-week highs on Wednesday after OPEC signaled optimism over its deal with other producers to curb output to clear a glut that has weighed on markets since 2014.
The US West Texas Intermediate April crude contract, the new front-month future, was up 0.3 percent at $54.49 a barrel at 1:52 pm Beijing time.
Brent crude was up 0.4 percent at $56.89, having touched its highest since February 2 at $57.31 in the previous session.
Crude oil has been trading in a very tight band for most of February, as markets remain indecisive about the supply as well as demand side dynamics with regards to compliance of Opec nations to cut oil output vis-a-vis US shale producers raising output and taking the benefit of the rise in oil prices in recent months.
Oil prices, while supported by supply cuts by members of the Organisation of the Petroleum Exporting Countries (Opec) since the start of the year and a spike in tension between Iran and the United States, are struggling for direction.
Beyond rising drilling activity, there are concerns that US gasoline consumption, a key pillar for crude oil demand, is stalling. Also, gasoline stock rose by almost 21 million barrels in the first 27 days of 2017, compared with an average increase of less than 12 million barrels at the same time of year during the previous decade, according to EIA inventory data, implying either stalling demand or ongoing oversupply.