Energy Winners and Losers: Chesapeake Energy

Shares of oil and natural gas companies tumbled Monday as prices of crude fell 4% over worries that the global economy would shrink more than previous forecasts and drive down demand for oil.

Benchmark crude for July delivery dropped $2.93 to $66.63 a barrel on the New York Mercantile Exchange. The July contract expired Monday, and most of the trading already has shifted to the August contract, which lost $2.86 to settle at $67.16.

Signs of an economic recovery have repeatedly brought large investors into the oil and gasoline markets. Crude prices have doubled in three months, hitting a high for the year of $73.23 last week. Gasoline prices have been rising on the back of oil prices, going up 54 straight days until Monday.

But the World Bank said Monday that the global economy would shrink by 2.9%, much worse than its previous forecast in March of a contraction of 1.7%.

And crude supplies have remained plentiful while demand is hovering around a 10-year low in the U.S.

Analyst Stephen Berman of Pritchard Capital Partners said Monday that total fuel demand averaged 18.5 million barrels a day for the first four weeks of June, down 6% from 2008. Yet, refinery utilization was up 2% last week, he said.

He said with demand weak and supply growing, there are predictions that crude will trade lower this summer.

Shares of BP (BP Quote) fell $1.98, or 4%, to $46.85 while shares of Exxon Mobil (XOM Quote) were down $2.21, or 3.1%, to $68.84. Shares of Chevron (CVX Quote) were off $2.30, or 3.4%, to $65.76; shares of Marathon Oil (MRO Quote) fell $1.87, or 6.1%, to $28.77; and shares of ConocoPhillips (COP Quote) were down $2.54, or 5.9%, to $40.43.

Shares of natural gas company Chesapeake Energy (CHK Quote) were down $1.59, or 7.6%, to $19.36.