Oil Sector News Update: Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR), Chesapeake Energy Corporation (NYSE:CHK)

Gasoline futures slid to an eight-month low Monday on concerns that the end of the busy summer-driving season could lead to a glut of the motor fuel. WSJ

Oil prices also fell on fresh indications that the war for customers in the global crude market hasn’t abated. WSJ report

“Barring any unexpected disruptions in supply or spikes in the price of crude oil, the national average is expected to keep moving lower as we head into the fall,” the motor club said in a news release. “U.S. drivers continue to benefit from an oversupplied market.” WSJ

The Organization of the Petroleum Exporting Countries said Monday that its members produced 31.54 million barrels a day of crude in August, an increase from the prior month and above the group’s target of 30 million barrels a day. WSJ report

During Monday’s Afternoon trade, Shares of Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR), gain 1.32% to $4.62.

The firm opened its current trade at $4.56, and as of now, it is trading at $4.57.

The total volume traded for the day is 29.29M, lower than its average daily volume of 33.84M shares. During last 3-month period, -9.94% of total institutional ownership has changed in the company shares. The market capitalization as recorded for the firm is $28.49B, as oil prices decline after the Organization of Petroleum Exporting Countries stated a hike in August production and a reduced outlook on production outside the group.

WTI crude is down 0.96% to $44.20 per barrel, while Brent crude is declining 1.99% to $47.18 per barrel this morning, according to the CNBC.com index.

OPEC anticipates 2016 production in non-OPEC countries, such as Brazil, will rise by 160,000 barrels per day to 57.6 million barrels per day, less than the previous estimate of an improvement of 270,000 barrel per day, Bloomberg reports.

The 12-country group also stated an improvement of 13,200 barrels a day in production during August.

Additionally, Petrobras 100-year bonds have dropped 15% since the $2.5 billion offering in June, Bloomberg added.

Petróleo Brasileiro S.A. Petrobras operates as an integrated energy company in Brazil and internationally. Its Exploration and Production segment engages in the exploration, development, and production of crude oil, natural gas liquids, and natural gas; and sale of crude oil and oil products produced at natural gas processing plants in domestic and foreign markets.

Finally, Shares of Chesapeake Energy Corporation (NYSE:CHK), gained 4.10%, and is now trading at $7.88.

The total volume traded for the day is 24.44M, as compared to its average daily volume of 21.95M shares. The market capitalization as recorded for the firm is $5.05B.

Looking at other metrics of the stock, we find that latest trading price of $7.89 is at a discount to its 200-day moving average price of $12.33. Its intraday range is $7.45 $8.02; it is trading at discount as compared to its 52-week high of $25.64 achieved on Sep 17, 2014, and a premium to its 52-week low of $6.01 faced on Aug 25, 2015. Turning to market valuation, the P/S ratio is 0.30. The stock is down -60.90 % in this year through latest price, and the beta ratio has a value of 1.48. The stock, as of current price, is showing weekly upbeat performance of 1.75 %, in opposition to 5.61% in 1-month period.

Chesapeake Energy Corporation produces oil and natural gas through acquisition, exploration, and development of from underground reservoirs in the United States. It holds interests in natural gas resource plays, counting the Haynesville/Bossier Shales in northwestern Louisiana and East Texas; the Marcellus Shale in the northern Appalachian Basin of West Virginia and Pennsylvania; and the Barnett Shale in the Fort Worth Basin of north-central Texas.


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About Travis Garlick 1791 Articles
Been writing about and trading stocks since 2013. Manage a group of micro-cap investors on Facebook with over 15,000 members. Turned $8,500 into 185k the first year I started trading stocks and haven't looked back.