NEW YORK (TheStreet) -- Shares of Denbury Resources (DNR) are down by 2.82% to $7.07 in early afternoon trading on Thursday, as some stocks within the energy sector are driven lower due to the decline in the price of oil.
Crude oil (WTI) is slipping by 2.58% to $58.10 per barrel and Brent crude is falling by 2.70% to $62.08 per barrel this afternoon, according to the CNBC.com index.
The price of the commodity is sliding as investors await the outcome of Friday's meeting of the Organization of the Petroleum Exporting Countries.
It is expected that OPEC will maintain its position and not reduce its production output, despite a global supply glut.
The oversupply of crude oil is due mostly to a robust production from some OPEC countries and the U.S., The Wall Street Journal says. Adding that the glut is keeping prices more than 40% lower than their highs from June 2014.
"We expect crude oil prices will [move] to the downside after OPEC officials announce that the group will keep production quotas unchanged, or potentially increase, thereby confirming the oil glut oversupply will endure," TD Securities analyst Michael Loewen said, The Journal noted.
Separately, TheStreet Ratings team rates DENBURY RESOURCES INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate DENBURY RESOURCES INC (DNR) 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 unimpressive growth in net income, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."