Chesapeake Energy (CHK -Get Report) shares are retreating 2.15% to $8.47 on Monday as oil prices slump, due to a slowing demand in China and concerns of a growing oversupply, Reutersreports.
Crude oil (WTI) is declining 2.4% to $45.99 per barrel and Brent crude is falling 3.81% to $50.22 per barrel, according to the CNBC.com index.
There is a slowing demand of oil in China, the world's second largest oil consumer. The Caixin manufacturing purchasing managers index, which highlights manufacturing activity in China, shows the index falling to 47.8 in July from 49.4 in June, The Wall Street Journal reports. This is the lowest level of the index since 2013.
In addition, oil output by the Organization of the Petroleum Exporting Countries (OPEC) in July rose, adding to the ongoing supply glut concerns, according to Reuters.
Chesapeake Energy produces oil and natural gas through acquisition, exploration, and development of from underground reservoirs in the U.S.
Separately, TheStreet Ratings team rates CHESAPEAKE ENERGY CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:Continue reading by clicking here.
The drop in oil prices has already lasted longer than some analysts were predicting. Many still feel that a recovery is not far off. One thing is clear: a jump in prices can't come soon enough for energy companies, their employees, and their investors.
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