NEW YORK (TheStreet) -- Shares of Penn West Petroleum (PWE) are plunging, sharply down 8.55% to $1.39 in midday trading Friday, as Brent crude falls below $57 a barrel, following a cautious note by the International Energy Agency on the increasing global oil glut.

The IEA, which advises developed countries, said in its monthly report that the U.S. could soon run out of empty tanks to store crude oil, which would add more downward pressure on prices, Reuters reports.

The agency added that even as the global oil glut is building, oil production in the U.S. shows no signs of slowing down, Reuters noted.

Brent crude for April delivery was trading lower by 1.56% to $56.19 a barrel as of 11:11 a.m. ET today, while WTI crude for April delivery is also down 3.74% to $45.29 a barrel.

Early last month, the IEA cautioned that oil prices may decline as stocks continue to increase in 2015, according to Reuters.

Canada-based Penn West is an exploration and production company operating a portfolio of both unitized and non-unitized oil and natural gas production.

The majority of its proved plus probable reserves are located in Canada, but has minor proved plus probable reserves interests in Wyoming. 

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 multiple 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 and generally disappointing historical performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • PENN WEST PETROLEUM LTD has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, PENN WEST PETROLEUM LTD swung to a loss, reporting -$1.77 versus $0.37 in the prior year.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 144.1% when compared to the same quarter one year ago, falling from $34.00 million to -$15.00 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, PENN WEST PETROLEUM LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 77.09%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 142.85% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 19.8%. Since the same quarter one year prior, revenues fell by 14.6%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • You can view the full analysis from the report here: PWE Ratings Report