"We're seeing more and more commentators raise the flag and saying 'have we seen too much, too soon?' in terms of the rally across the sector," Saxo Bank senior manager Ole Hansen told Reuters.
Over the past few weeks, oil futures were gaining on hopes that OPEC members and non-OPEC members were meeting on April 17 in Doha, Qatar to discuss freezing production. However, traders are now concerned as to whether the discussions would have much of an impact on the already-saturated market.
Meanwhile, supplies are continuing to build up. Kuwait said earlier today that it agreed with Saudi Arabia about resuming output at the jointly-run Khafji field, located off-shore between Kuwait and Saudi Arabia, Reuters noted.
Earlier this morning, Deutsche Bank lowered Devon Energy's price target to $32 from $48, while reiterating its "buy" rating on the stock.
Crude oil (WTI) is sliding 3.17% to $38.14 per barrel and Brent crude is sinking 2.93% to $39.09 per barrel.
Based in Oklahoma City, OK, Devon Energy is an independent energy company that primarily engages in the exploration, development, and production of oil, natural gas, and natural gas liquids (NGLs) in the U.S. and Canada."
Separately, TheStreet Ratings currently has a "Sell" rating on the stock with a letter grade of D.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally high debt management risk, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
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' author.
You can view the full analysis from the report here: DVN