Chesapeake Energy Corporation (NYSE: CHK)
Chesapeake Energy is off to an incredibly strong start to the trading session today. After starting the day well into the green, the first half hour has consisted of further gains. Below, we’ll talk about what we’re seeing from the stock, why, and what we’ll be watching with regard to CHK ahead.
What We’re Seeing From CHK
As mentioned above, Chesapeake Energy is having a very strong start to the trading session today. As soon as the opening bell rang, the stock found its way to the green. Throughout the first half hour, the stock has maintained and increased gains. At the moment (9:58), CHK is trading at $6.88 per share after a gain of $0.52 per share (8.09%) thus far today.
Why The Stock Is Climbing
At the end of the day, CHK is having an incredibly strong day in the market because of OPEC. Months ago, the oil cartel reached an agreement to cut production. However, that agreement wasn’t finalized, and there were several holes. Nonetheless, OPEC said that the agreement would be final by November 30th.
Today, the oil cartel announced that the agreement has been finalized. As a result, OPEC member nations will cut production by about 1 million barrels per day. Of course, this is sending the price of oil skyrocketing, leading to big gains in Chesapeake Energy and others.
What We’ll Be Watching For Ahead
With the cut in mind, the CNA Finance team will keep a close eye on supply and demand data. Even with 1 million less barrels per day entering the market, we still likely have a relatively large supply glut. Nonetheless, we’ll keep a close eye on CHK and bring you the news as it breaks!
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