Chesapeake Stock Goes Down As Oil Prices Declines

The oil prices in the industry have fallen on a massive level, bringing down oil companies along with it in a dreading manner.

Chesapeake Energy Corporation, America’s second largest oil digging company is apparently going through a tough time on the stock index lately which has taken attention of all the investors who have been putting in their investments in the oil business. The current difficulties that the giant is facing in the market are being deemed as one of the most challenging times that the firm has so far faced, as the trading value that the shares seem to be exchanged at in the present time are quite on the negative side which has made the analysts a little too worried about the way things are taking place within the firm. The fall that natural gas has experienced on a yearly basis has come out to be at 25% which has, without a doubt affected the likes of Chesapeake share price on a massive note. Furthermore, the fact that the crude oil per barrel was $110 a year back and has fallen to $50 is another thing that just cannot be ignored as to how much the strong the downfall has been in the oil industry. To be more particular, the West Texas crude is currently trading at a price of $45.54 per one single barrel whereas the Brent crude has come to terms with a share value of $48.13. The S&P 500 rating, which is considered to be the third most worthwhile agencies for rating, has also given very bearish ratings for the stock of the oil services providing company which has also come as a very negative blow for the investors on the whole. On the other hand, the down grade has not been given to the stock of the Chesapeake only, as this dip has been faced by every company in the energy sector. Reports from the S&P 500 showed that due to the fall in the oil prices, the production level was also highly affected which turned out to be another reason why the companies in the oil industry seem to be facing so much trouble. Reports have shown that the companies belonging to the energy sector have also gone ahead to make sure that their spending has been reduced but the a report published by the S&P showed that all those measures failed to make an impressive impact on the companies and there was still a dreadful weakness that was shown by all the giants in a general level.