NEW YORK (TheStreet) -- Shares of Magnum Hunter Resources Corp. (MHR) are down by 6.43% to $1.60 in mid-morning trading on Tuesday, as some energy and related stocks take a hit due to the decline in the price of oil.
The commodity is falling as a result of a strengthening dollar and on evidence of ample oil supplies in the Middle East, despite wars in northern Iraq, Syria, and Yemen, Reuters reports.
Crude oil (WTI) is lower by 2.73% to $57.81 per barrel and Brent crude is slipping by 2.34% to $64.72 per barrel, according to the CNBC.com index.
The dollar is rallying by 1.02%, according to The Wall Street Journal dollar index.
"The oil market is generally oversupplied with high Saudi exports and OPEC is unlikely to cut production," Tamas Varga an oil analyst at PVM Oil Associates told Reuters.
"Fears that fighting in Iraq and Yemen could hamper the oil supply have clearly given way to a more sober appraisal," Carsten Fritsch an analyst at Commerzbank said to Reuters.
Separately, TheStreet Ratings team rates MAGNUM HUNTER RESOURCES CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate MAGNUM HUNTER RESOURCES CORP (MHR) 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 unimpressive growth in net income, generally high debt management risk, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."