NEW YORK (TheStreet) -- Shares of Suncor Energy Inc. (SU) are down by 4.91% to $28.26 in mid-afternoon trading on Wednesday, as energy stocks continue to dive on the decline in oil prices, due to the U.S government's report of a surprise increase in inventory, and OPEC's report that it cut its 2015 demand expectations, MarketWatch reports.
Brent crude is down 4.44% to $63.87 this afternoon.
Oil is down as the U.S. government reports a surprising increase in inventory, which is adding to concerns regarding the imbalance in supply and demand, MarketWatch added.
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The U.S. Energy Information Administration said oil inventories grew by 1.5 million barrels, while analysts were expecting a decline of 3 million barrels, MarketWatch said.
Additionally, today OPEC reported that it slashed its 2015 demand forecast to its lowest level in 12 years.
OPEC lowered its estimates by almost 300,000 barrels per day, to 28.9 million barrels per day.
Separately, TheStreet Ratings team rates SUNCOR ENERGY INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SUNCOR ENERGY INC (SU) 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 largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."