NEW YORK (TheStreet) -- Shares of Denbury Resources (DNR) are tumbling, down 4.71% to $6.67 in mid-morning trading on Wednesday, as oil prices continue to fall after the Organization of Petroleum Exporting Countries lowered its forecast for global demand for its oil in 2015.
OPEC now expects demand for its oil to decline by about 300,000 barrels a day to 28.9 million barrels a day, Bloomberg reports.
The organization cut its forecast to the lowest in 12 years as U.S. shale supplies continue to surge amid reduced estimates for global consumption.
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Yesterday, the U.S. Energy Information Administration lowered its forecast for international oil consumption in 2015 to 92.32 million barrels a day, lower than its previous estimate of 92.5 million barrels a day.
Separately, TheStreet Ratings team rates DENBURY RESOURCES INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate DENBURY RESOURCES INC (DNR) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share."