NEW YORK (TheStreet) -- Shares of Penn West Petroleum (PWE) are down 5.83% to $2.10 as oil prices fell to the lowest level in more than five years amid speculation that a global supply glut that's driven crude into a bear market will continue through the first half of 2015, Bloomberg reports.
WTI for February delivery was down 1.94% to $53.67 a barrel at 12:32 p.m. on the New York Mercantile Exchange. Futures touched $53.52, the lowest level since May 2009.
The benchmark erased an earlier gain sparked by speculation that an escalating conflict in Libya would help trim a global surplus, Bloomberg said, adding that the fires have since been extinguished at three of six tanks at Es Sider, Libya's largest oil port.
Exclusive Report: Jim Cramer's Best Stocks for 2015
Additionally, Calgary-based Penn West Petroleum announced earlier this month that it would lower its dividend and reduce its capital budget for 2015 due to declining oil prices.
Separately, TheStreet Ratings team rates PENN WEST PETROLEUM LTD as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate PENN WEST PETROLEUM LTD (PWE) a SELL. This is driven by some concerns, 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 and generally disappointing historical performance in the stock itself."