NEW YORK (TheStreet) -- Shares of Chevron (CVX) are down 3.43% to $103.34 in mid-morning trading Wednesday, as oil prices continue to decline after the Organization of Petroleum Exporting Countries lowered its projection for global demand for its oil in 2015.
OPEC now expects demand for its oil to decline to 28.9 million barrels a day next year, down from 29.4 million barrels a day in 2014, the Wall Street Journal 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, Bloomberg reports.
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OPEC has also recently announced that it would maintain its oil production target of 30 million barrels a day, which pushed oil prices further down.
Brent crude for January 2015 delivery are lower by 2.17% to $65.39 as of 10:27 a.m. today.
Separately, TheStreet Ratings team rates CHEVRON CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHEVRON CORP (CVX) 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 largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself."