WTI crude oil for July delivery was down 1.7% to $58.15 a barrel Monday afternoon, and Brent crude oil for July delivery was down 1.1% to $62.64 a barrel.
Oil prices were falling Monday following a decrease in demand in China, according to Reuters. China bought about a quarter less crude oil in May than it did in April, resulting in a 6% decrease in oil products imports and a 10% decrease in imports.
"A 4-6 percent drop is acceptable for refinery maintenance season in China, but 20 percent or more is a sign of demand collapse," Bob Yawger, director of energy futures at Mizuho Securities USA, told Reuters.
Encana is an oil and natural gas company based in Calgary, Alberta.
TheStreet Ratings team rates ENCANA CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate ENCANA CORP (ECA) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself."