NEW YORK (TheStreet) -- Shares of Encana (ECA) were gaining, up 3.65% to $12.49 in afternoon trading Wednesday as oil prices rally following the release of data by the Energy Information Administration that showed U.S. crude inventories fell the most since July last week, according to Reuters.
According to the EIA, crude stocks fell by 6.8 million barrels in the last week, much higher compared to the decline of 1.7 million barrels analysts were expecting.
Crude stocks at the Cushing, Okla. delivery hub dropped by 1.024 million barrels, the EIA reports.
Refineries increased output, while gasoline stocks decreased and distillate inventories increased, Reuters noted.
Brent crude for July delivery was up 0.8% to $65.40 a barrel as of 2:21 p.m. ET today, while U.S. crude for July delivery was rising 1.56% to $61.08 a barrel.
Canada-based Encana is a North American energy producer with operations including the transportation and marketing of natural gas, oil and natural gas liquids.
Separately, 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."