NEW YORK (TheStreet) --Shares of Key Energy Services Inc. (KEG) are higher by 11.43% to $1.17 on heavy volume in mid-afternoon trading on Wednesday, as energy stocks rise today along with the slight gain in oil prices.
Brent crude for January delivery is up by 2.43% to $57.29 per barrel on the NYMEX this afternoon.
The rise in oil prices is due to a smaller than expected drop in U.S. crude supplies, MarketWatch reports.
The U.S. Energy Information Administration said crude oil inventories were lower by 800,000 barrels for the week ended December 12. Analysts polled by Platts had expected a decline of 2.5 million barrels, MarketWatch added.
Oil prices have declined 50% since June due to an increase in supply, and waning demand.
Separately, TheStreet Ratings team rates KEY ENERGY SERVICES INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate KEY ENERGY SERVICES INC (KEG) 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 feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow."