Bidness Etc - Reason Why Chesapeake Energy’s Stock Faces Downfall

Chesapeake Energy witnessed a downfall in oil prices by 1.86% as the dollar becomes stronger

According to the most recent news, Chesapeake Energy Corporation has been facing a downfall due to which the company has failed to maintain its position in today's stock market. In the most recent trading session which was held and the company went through on Tuesday 19th March 2015, the trend was observed that the company downgraded on the stock index by a massive 1.86% which resulted in the share price settling at an unnerving price of $13.70. Oil price in the market has fallen by a huge difference and the dollar has yet again gained strength, which has resulted in the company facing even a bigger loss by the trade that it does on a global level.

The supply of oil field services that the company works to provide has been lessened over the past few quarters during which the company has faced ups and downs in the stock price which has brought a negative impact on the company’s business.

As for the oil stock for current situation in the oil industry, it has been recorded that the crude oil available in the market per one barrel is amounted up to $43.04 which shows a huge fall in price by a huge 1.19%. On the other hand, Brent crude oil which has also been witnessing a fall in the price over the past few weeks has fallen to a price of $52.80 per one barrel, according to the oil prices available on CNBC.com.

If looked at the production and output received from the United States alone, an all year high output has been recorded which has stayed this way for quite some time now. Due to this change in the oil market, the oil prices in America have been experiencing greater low than ever before which are something that the country has not seen before. According to the Wall Street Journal, the country is currently facing a really difficult time in the oil industry.

Considering the oil price news, the industry has been deemed as really uncertain for the past few quarters as in February, a certain kind of stability was recorded by the oil companies but as March began, the same unpredictability was seen in which the oil prices again started even lower than before.

On the other hand, various analysts have rated the stock of the energy company and given different ratings. Analysts at Global Hunter Securities have re-issued ratings on the company by suggesting a ‘neutral’ rating on the stock from a previous ‘sell’ rating. Moreover, analysts from TheStreetRatings gave a ‘hold’ rating to the company.