Why Chesapeake, ITI Inc, Pier 1, BP, and Chevron are in the Spotlight

Traders are watching Chesapeake Energy Corporation (NYSE:CHK), BP plc (ADR) (NYSE:BP), and Chevron Corporation (NYSE:CVX) after OPEC reversed its policy of increasing production on Wednesday. Energy futures surged by around 5% yesterday on the news that the cartel has agreed to cut production to 32.5 million-to-33 million barrels per day from the current mark of 33.4 million. The production cut indicates that Saudi Arabia is rather set on having better sentiment and potentially higher prices when its national jewel, Saudi Aramco, IPOs next year. The cut also indicates that Iran is willing to play ball as well. News of the cut follows a bullish EIA report released on Wednesday in which it was reported that inventories in the U.S. once again fell more than expected.

If sentiment can remain positive and crude prices rally, Chevron and BP’s dividends become much safer. Chesapeake, meanwhile, becomes a very interesting play despite Carl Icahn of Icahn Capital’s recent ‘tax planning’ moves in the stock.

Of the 749 top funds that we track which filed 13Fs for the June quarter, 31 were long Chesapeake Energy Corporation (NYSE:CHK) on June 30, while 40 were shareholders of BP plc (ADR) (NYSE:BP), and 47 were invested in Chevron Corporation (NYSE:CVX).

Disclosure: None