Why Oil prices fell on Tuesday? Chesapeake Energy Corporation (NYSE:CHK), Petroleo Brasileiro SA Petrobras (PBR), Whiting Petroleum (WLL), Seadrill (SDRL), Nabors Industries (NBR)
Chesapeake Energy Corporation (NYSE:CHK) fell -0.34% and to closed at $5.92 on Monday. U.S. stocks started the second quarter with a thud Monday after car makers reported disappointing March sales, a possible warning about other types of spending. But a late recovery helped stocks avoid bigger losses.
The Standard & Poor’s 500 index fell as much as 18 points around midday, but finished down just 3.88 points, or 0.2 percent, at 2,358.84. The Dow Jones industrial average lost as much as 145 points but wound up with a loss of 13.01 points, or 0.1 percent, to 20,650.21. The Nasdaq composite shed 17.06 points, or 0.3 percent, to 5,894.68. The Russell 2000 index of small-company stocks gave up 16.25 points, or 1.2 percent, to 1,369.67.
The dollar sank to 110.96 yen from 111.29 yen and the euro fell to $1.0665 from $1.0684.
Benchmark U.S. crude lost 36 cents to $50.24 a barrel in New York. Brent crude, used to price international oils, slipped 41 cents to $53.12 a barrel in London.
Following Oil and Gas Stocks Financials Update:
Shares of Petroleo Brasileiro SA Petrobras (ADR)(NYSE:PBR) Stock surged 0.62 percent and closed at $9.75, the daily range and 52-week range is $9.66 – $9.85 / $5.19 – $12.56.
Shares of Whiting Petroleum Corp (NYSE:WLL) Stock dipped -1.27 percent and closed at $9.34, the daily range and 52-week range is $9.08 – $9.51 / $6.38 – $14.44.
Shares of Seadrill Ltd (NYSE:SDRL) Stock inclined 1.21 percent and closed at $1.67, the daily range and 52-week range is $1.61 – $1.68 / $1.02 – $5.21.
Shares of Nabors Industries Ltd (NYSE:NBR) Stock dropped -2.68 percent and closed at $12.72, the daily range and 52-week range is $12.57 – $13.24 / $7.61 – $18.40.
Tuesday Oil Prices Update:
Oil prices fell on Tuesday as a rebound in Libyan crude production combined with an increase in U.S. drilling to signal the potential for increased supply. According to Reuters
Benchmark Brent crude oil was down 20 cents at $52.92 a barrel by 0835 GMT. U.S. light crude oil was 20 cents lower at $50.04 a barrel.
Both benchmarks recovered from four-month lows last week on expectations that the Organization of the Petroleum Exporting Countries would manage to tighten supply by cutting production under a deal agreed at the end of last year.
But global inventories remain stubbornly high and many investors are betting that it will take many months for oil prices to respond convincingly to lower OPEC output.
U.S. light crude may drop to $49.62 a barrel as it failed to break resistance at $50.95, said Reuters commodities markets technical analyst Wang Tao. Brent crude may retrace back to $52.79 per barrel, he said. Reuters Reported