Earlier today, the Energy Information Administration (EIA) reported a crude build three times above analysts' forecasts.
Crude stocks increased by 9.4 million barrels last week to a record total of 532.5 million barrels.
"The data will do little to help oil bulls, given the monster build for crude inventories already at record high levels prior to this," Chris Jarvis, analyst at Caprock Risk Management told Reuters.
Crude oil (WTI) is falling 3.23% to $40.11 per barrel and Brent crude is tanking 2.39% to $40.79 per barrel.
Based in Calgary, Encana engages in the development, exploration, production, and marketing of natural gas, oil, and natural gas liquids in Canada and the U.S.
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 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: ECA