Oil prices are plunging after the release of Chinese data showed that diesel usage dropped in 2015, the Wall Street Journal reports. The country, which has showed signs of slowing economic growth, is a top consumer of oil.
"Oil and stocks are being correlated by a single issue, which is fear of slipping global growth," Rob Haworth, senior investment strategist at U.S. Bank Wealth Management, told the Journal.
Additionally, oil prices were pressured after the leader of Saudi Arabian Oil Co., a state-run oil company, said the company can withstand the sinking prices for a long time, according to the Journal.
Crude oil (WTI) is down 4.91% to $30.61 per barrel and Brent oil is down by 4.16% to $30.84 per barrel, according to the CNBC.com index.
Based in Oklahoma City, Devon Energy is an independent energy company engaged in the exploration, development and production of oil, natural gas and natural gas liquids. The company's stock has fallen about 60% in the last year.
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 rated this stock as a "sell" with a ratings sof D+. 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: DVN