NEW YORK (TheStreet) -- Shares of Talisman Energy (TLM) are sinking, down 7.36% to $3.65 in mid-morning trading on Monday, amid declining oil prices after analysts at Morgan Stanley cut its 2015 forecast for Brent crude 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 prices have declined by about 40% percent since June, as Brent futures are down 2.61% to $67.27 this morning -- its lowest level since October of 2009.
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Last week, the Organization of the Petroleum Exporting Countries said it will keep its output ceiling instead of cutting production to increase prices, Bloomberg reported.
OPEC's decision means that oil will remain oversupplied through the beginning of 2015, and prices could remain low for longer than expected, the Wall Street Journal reported.
Separately, TheStreet Ratings team rates TALISMAN ENERGY INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TALISMAN ENERGY INC (TLM) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself."