Chesapeake Energy Corporation (NYSE: CHK)
Chesapeake Energy Corporation was off to a rough day in the market today. In fact, from the opening bell, the stock stayed in the red throughout the first hour. However, minutes ago, the stock started spiking toward the top. Below, we’ll talk about what we’re seeing from CHK, why, and what we’ll be watching for with regard to the stock ahead.
What We’re Seeing From CHK
As mentioned above, Chesapeake Energy Corporation wasn’t off to the best of days early on today. In fact, for the first hour of trading, the stock found itself in the red. Nonetheless, minutes ago, the stock made it to the green and seems to be climbing higher. At the moment (10:33), CHK is trading at $6.54 per share after a gain of $0.09 per share, or 1.48%.
Why The Stock Is Climbing
The truth is that, if you’re looking at the oil and energy sector at the moment, CHK isn’t the only one that’s climbing. In fact, the entire sector is starting to spike, and for good reason. The news causing the movement surrounds the coming OPEC deal.
While OPEC said they came to an agreement months ago to reduce production, the agreement wasn’t finalized. Nonetheless, this agreement is expected to be finalized by November 30th. As a result, Saudi Arabia is working with other large producers that aren’t backing the deal. Because of this work, Iraq announced that it has backed the deal to reduce production minutes ago. Of course, this is a great thing for Chesapeake Energy and any other company that makes its money in oil.
What We’ll Be Watching For Ahead
With Iraq on board, there are not many more countries that aren’t backing the deal. Ultimately, this deal will largely dictate movement ahead in CHK and the energy sector as a whole. Moving forward, we’ll be watching Iran closely. Getting this key country on board would all but solidify the deal. Nonetheless, we’ll be watching the story closely and bringing the news to you as it breaks!
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