Chesapeake Enjoys A Rise As Oil Prices Increase

Chesapeake share value has increased right after the firm announced a successful earnings reports last week.

Chesapeake Energy has recently gone right up on the stock index following the successful and surprising earnings report that it announced only last week. The oil prices have gone right up by a massive 4.4 percent which has increased the price of per barrel oil by a huge $8.69.

These new changes have emerged in the stock market on Monday when the crude oil prices went up by an eminent $1.69 resulting in the per barrel price to reach $44.61. The Brent crude, on the other hand, has reached an expectation of $49.66 for the month of September, calculated on a per barrel basis. This increase has been noted to be around 2.16 percent.

According to a report published by Bloomberg, it emerged as a fact that the increase in the per barrel price of oil was actually due to the rise in the imports done by the Chinese crude oil providers that happened in the previous month of July. The data that was taken out to be analyzed was also initially collected by the records made by small refineries that were working on a private level. Even though the oil production seems to be going high without showing any signs of dropping, this news has turned out to be nothing but pleasant for the oil company.

On a different level, the higher increase of oil production in the global market made the analysts believe that the demand for it will eventually experience the biggest crash it has ever seen. But since the increase in oil prices that Chesapeake recently was seen enjoying, it was confirmed that so far the demand has not seen any dip despite the expectations.

Chesapeake oil company announced its quarterly earnings only recently in which it was shown that the firm has beaten the expectations of analysts by a satisfying difference which not only shocked the analysts but also the investors in the company which turned out to be a little more satisfied than before. Moreover, the analysts at The Street have closely been analyzing the situation the oil firm is in for the past few days since the earnings call and have come to the conclusion to grant a ‘sell’ rating to it.

The many reasons stated for such a rating is that the firm has not only been under-performing on the S&P 500 for some time but it has also been receiving much low net income for some time which has made the analysts a little too bullish about the future of the firm.