Chesapeake Energy Corporation (NYSE: CHK)
Chesapeake Energy Corporation is having an overwhelmingly strong start to the trading session this morning, and for good reason. We’re seeing quite a bit of news surrounding oil at the moment, suggesting that the value of the commodity will climb. As a result, investors are pushing the stock upward, prompting our partners at Trade Ideas to alert us to the strong movement. At the moment (11:03), CHK is trading at $5.78 per share after a gain of $0.39 per share (7.14%) thus far today.
CHK Gains Big On Oil News
As mentioned above, Chesapeake Energy Corporation is having a strong day in the market today as the result of multiple pieces of news surrounding oil. The two big stories suggesting that oil’s price may rise include:
- Libya – News is breaking this morning that Libyan oil supplies are seeing severe disruption. According to various sources, production at the western Libyan fields of Sharara and Wafa has been blocked by armed factions. This is a big hit, as it will likely cause a reduction of Libyan oil output in the amount of 252,000 barrels per day. That’s a third of national production in the country.
- OPEC – In other news, OPEC is saying that it could extend its production cut deal to the end of the year. While these production cuts have boosted oil slightly as is, the potential extension is leading to even more bullish opinions.
Considering the fact that CHK makes its money in the oil game, any gains in the price of the commodity will likely lead to gains in the value of the stock, as profits for the company will likely climb.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on CHK. In particular, we’ll be watching for any news surrounding oil production in OPEC member nations as well as Libya and around the world. We’ll continue to follow the story closely and bring it to you as it breaks!
What Do You Think?
Where do you think CHK is headed moving forward? Join the discussion in the comments below or on StockTwits!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!
[Image Courtesy of Wikimedia]