Whiting Petroleum (WLL) Stock Retreating as Oil Prices Fall on Supply Concerns
NEW YORK (TheStreet) -- Shares of Whiting Petroleum (WLL) - Get Report are falling 1.04% to $8.16 in late-morning trading on Friday, reflecting falling oil prices as the supply glut increases.
Crude oil (WTI) is falling 1.50% to $44.08 per barrel and Brent crude is decreasing 1.52% to $45.50 per barrel.
The decreasing oil prices are set for their second weekly loss in July after U.S. data showed excess oil products in Europe and Asia, Reuters reports.
The oversupply of crude has been expected to diminish in the short-term, but the huge amounts of the commodity at sea and on land suggest that it will take longer than expected.
Crude supply may actually increase in the short term.
"The narrative of a balanced oil market (in the second half of 2016) has so far been an illusion," Giovanni Staunovo, UBS oil analyst, told Reuters.
Whiting Petroleum is a Denver-based independent oil and gas company that focuses on development, production, acquisition and exploration activities.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate WHITING PETROLEUM CORP as a Sell with a ratings score of D. This is driven by multiple 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 generally high debt management risk, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and deteriorating net income.
You can view the full analysis from the report here: WLL
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