NEW YORK (TheStreet) -- Shares of Chesapeake Energy (CHK) are down by 1.26% to $14.87 in late morning trading on Tuesday, as some energy and related stocks take a hit due to the decline in the price of oil, which is falling on a strong dollar and the possibility shale producers in the U.S. could increase their drilling activity.
Crude oil (WTI) is falling by 2.13% to $58.45 per barrel and Brent crude is slipping by 2.21% to $64.07 per barrel this morning, according to the CNBC.com index.
The dollar is up by 0.78%, on The Wall Street Journal dollar index.
"We believe that should West Texas Intermediate prices remain near $60 a barrel, U.S. producers will ramp up activity, given improved returns," Goldman Sachs said in a note, according to Reuters.
"The USD downward correction is complete. A stronger dollar would only reinforce our near-term concerns for oil prices, especially Brent," Morgan Stanley said in a report Reuters added.
Chesapeake Energy is a producer of natural gas and liquids.
Separately, TheStreet Ratings team rates CHESAPEAKE ENERGY CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHESAPEAKE ENERGY CORP (CHK) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."