NEW YORK (TheStreet) -- Shares of Encana (ECA) are tanking, down 7.03% to $13.69 in mid-morning trading on Monday, as oil prices tumble further following a lowered 2015 forecast for Brent crude by analysts at Morgan Stanley this morning, CNBC reports.
The firm cited oversupply, and said crude prices could fall to as little as $53 per barrel in 2015, although its base case scenario was for $70, lower than its earlier estimate of $98.
Crude has declined by roughly 40% percent since June, as Brent futures are down 3.13% to $66.91 this morning -- its lowest level since October of 2009.
Must Read: Warren Buffett's 25 Favorite Stocks
Last week, the Organization of the Petroleum Exporting Countries decided to maintain its output ceiling instead of cutting production to raise prices, Bloomberg reported.
OPEC's decision means that the oil market will stay oversupplied through the beginning of 2015, and prices could remain low for longer than previously expected, the Wall Street Journal reported.
Separately, TheStreet Ratings team rates ENCANA CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ENCANA CORP (ECA) a BUY. This is driven by multiple strengths, 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 robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow."