NEW YORK (TheStreet) -- Shares of Paragon Offshore PLC (PGN are down by 1.75% to $2.81 in mid-morning trading on Wednesday, as some stocks in the energy sector take a hit due to the decline in oil prices.

Crude oil for February delivery is lower by 1.44% to $53.34 per barrel on the NYMEX this morning.

Oil is making its way toward its biggest annual decline since 2008, Reuters reports. Prices are being pressured by weak demand and a supply glut caused by the boom in U.S. shale and OPEC's decision not to reduce its output.

Exclusive Report: Jim Cramer's Best Stocks For 2015

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Oil prices are under increased pressure on Wednesday as a survey out of China showed the country's factory industry declined in December, the first time in seven months. Reuters calls this a "bearish indication" of the strength of oil demand from the second largest consumer in the world.

PGN Chart PGN data by YCharts

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.