Why Chesapeake Energy Stock Is Down Sharply Again
Shares of Chesapeake Energy (NYSE: CHK) are down 7.4% at 1:38 p.m. EDT on June 24, joining most other oil stocks in a day of heavy selling following the release of the U.S. Energy Information Administration's (EIA's) weekly petroleum data. At this writing, crude oil is taking a beating: Brent crude futures for August are down 5% to $40.49, and West Texas Intermediate futures are at $38.27, down 5.2%.
The EIA weekly petroleum report came as a stark reminder that oil markets are still well out of balance. Commercial crude oil inventories increased 1.4 million barrels last week, while the additional refined products that refiners made but didn't sell pushed total petroleum inventories up almost 4 million barrels. Crude inventory in commercial storage is now 17% above the five-year average.
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Source Fool.com
