NEW YORK (TheStreet) -- Shares of Encana (ECA) were falling 5.2% to $12.65 Wednesday, hitting a 52-week low of $12.57, Wednesday after OPEC lowered its oil demand forecast for 2015, causing oil prices to fall.
In its monthly report the Organization of the Petroleum Exporting Countries (OPEC) forecasted that demand for its oil will fall to 28.92 million barrels a day in 2015, more than 1 million barrels less than it is currently producing, according to Reuters. Demand for OPEC oil would fall to its lowest point in more than a decade in 2015 according to the report.
WTI crude oil was falling 4.6% to $60.88 a barrel, and Brent crude oil was falling 4.2% to $64.02 a barrel Wednesday afternoon following the report.
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TheStreet Ratings team rates ENCANA CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ENCANA CORP (ECA) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow."