Crude oil (WTI) is slipping by 1.01% to $39.06 per barrel this afternoon and Brent crude is declining by 1.53% to $39.82 per barrel, according to the CNBC.com index.
Oil prices are dropping due to concerns about the global oversupply of oil, the Wall Street Journal reports.
Though OPEC members are considering a freeze on oil production, industry experts doubt that the freeze could significantly reduce the oversupply of oil, according to the Journal.
"Oil remains oversupplied and a production freeze deal is not going to result in an acceleration of the global oil market returning back to a balanced position anytime soon," Dominick Chirichella, an analyst at the Energy Management Institute, said in a note, according to the Journal.
Based in Plano, TX, Denbury Resources is an independent oil and natural gas company that operates in the Gulf Coast and Rocky Mountain regions.
Separately, recently, 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 DENBURY RESOURCES INC 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 deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: DNR