NEW YORK (TheStreet) --Shares of Energy XXI Ltd (EXXI) are down by 5.31% to $3.03 in mid-morning trading on Wednesday, as the energy sectors retreats following OPEC's announcement it lowered its forecast for how much oil it will need to provide in 2015, to its lowest number in 12 years, due to the rise in U.S. shale supplies and the decline in estimated global consumption, Bloomberg reports.
The Organization of Petroleum Exporting Countries reduced its projections for 2015 by close to 300,000 barrels a day, to 28.9 million per day, Bloomberg added.
Data gathered by Bloomberg shows that prices are now below what 10 out of the 12 OPEC members need for their annual budgets to break even.
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Brent crude prices are down by 2.48% to $65.18 per barrel, prices have not been lower than $65 since September 2009, Bloomberg noted.
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Separately, TheStreet Ratings team rates ENERGY XXI LTD as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ENERGY XXI LTD (EXXI) a SELL. This is driven by a number of negative factors, 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 feeble growth in its earnings per share, deteriorating net income, generally high debt management risk and disappointing return on equity."