NEW YORK (TheStreet) -- Shares of Peabody Energy (BTU) are plunging, down 5.65% to $8.19 in midday 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.
Must Read: Warren Buffett's 25 Favorite Stocks
OPEC also recently announced that it would maintain its production ceiling and keep its target at 30 million barrels per day instead of cutting production to raise prices, Bloomberg reported.
Additionally, data from the Energy Information Administration showed U.S. commercial crude inventories climbed by 1.5 million barrels last week, while analysts expected a draw down of 2.2 million barrels, CNBC reports.
The EIA 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 PEABODY ENERGY CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate PEABODY ENERGY CORP (BTU) 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 unimpressive growth in net income, generally high debt management risk, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself."