WTI crude oil for November delivery was down 2.6% to $44.51 a barrel Monday afternoon, and Brent crude oil for November was down 2.55% to $47.36 a barrel.
Despite easing U.S. oil production, output from other counties have kept the global oversupply of crude at more than 1 million barrels a day in the 93 million barrels a day global market, according to the Wall Street Journal.
"With global stock levels at all-time highs and a huge ongoing excess of supply over demand now and through 2016 bullish inclinations need to be reined in," PVM analyst David Hufton told the Journal.
Citigroup lowered its global oil demand growth forecast for 2016 to 2.9% from 3.1% in a note to investors on Monday, which also helped bring down oil prices. The analyst firm had forecast 3.5% growth for 2016 in May.
Concerns about a slowdown in China also helped bring down oil prices, according to the Journal.
Enterprise Products is an oil and natural gas pipeline company based in Houston.
TheStreet Ratings team rates ENTERPRISE PRODS PRTNRS -LP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
We rate ENTERPRISE PRODS PRTNRS -LP (EPD) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and good cash flow from operations. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Net operating cash flow has significantly increased by 102.56% to $947.60 million when compared to the same quarter last year. In addition, ENTERPRISE PRODS PRTNRS -LP has also vastly surpassed the industry average cash flow growth rate of -19.71%.
- EPD, with its decline in revenue, slightly underperformed the industry average of 34.6%. Since the same quarter one year prior, revenues fell by 43.4%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- The change in net income from the same quarter one year ago has significantly exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income has decreased by 13.6% when compared to the same quarter one year ago, dropping from $637.70 million to $551.00 million.
- ENTERPRISE PRODS PRTNRS -LP's earnings per share declined by 17.6% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, ENTERPRISE PRODS PRTNRS -LP increased its bottom line by earning $1.48 versus $1.41 in the prior year. For the next year, the market is expecting a contraction of 9.2% in earnings ($1.34 versus $1.48).
- You can view the full analysis from the report here: EPD