Oil prices are increasing after the release of Baker Hughes (BHI) data that showed the number of U.S. oil rigs dropped by 13 rigs to 400 rigs last week, the Wall Street Journal reports.
The global oversupply of oil has pressured prices during the last year.
"The U.S. energy industry continues to get hurt," Phil Flynn, analyst at the Price Futures Group, told the Journal. "What we are seeing is U.S. output crashing and that will start to cut into the U.S. oil glut."
Crude oil (WTI) is increasing by 3.39% to $33.89 per barrel and Brent crude is gaining by 2.48% to $35.97 per barrel.
Based in Canada, Encana engages in the development, exploration, production, and marketing of natural gas, oil, and natural gas liquids.
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, weak operating cash flow, 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's author.
You can view the full analysis from the report here: ECA