WTI crude oil for July delivery was lower by 1.6% to $58.16 a barrel Monday afternoon, and Brent crude oil for July delivery was down 1% to $62.68 a barrel.
Oil prices were falling following a decrease in demand in China, according to Reuters. China bought about a quarter less crude oil in May than it did in April, resulting in a 6% decrease in oil products imports and a 10% decrease in imports.
"A 4-6 percent drop is acceptable for refinery maintenance season in China, but 20 percent or more is a sign of demand collapse," Bob Yawger, director of energy futures at Mizuho Securities USA, told Reuters.
Chesapeake Energy is an oil and gas company based in Oklahoma City.
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."