NEW YORK (TheStreet) -- Encana (ECA) shares are down 1.54% to $12.14 in trading on Thursday as oil prices reverse yesterday's gains and put pressure on the entire sector today.
Oil futures are declining today as the supply of oil on the global market continues to remain stubbornly high and the dollar gains in trading.
Industry standard Brent crude for July delivery is down 1.61%, or $1.06, to $64.64 per barrel, while West Texas crude for July delivery is down 1.73%, or 1.06, to $60.37 per barrel.
The International Energy Agency said that global supplies will exceed demand for the remainder of the year as U.S. oil output reached 9.6 million barrels a day last week, its highest output level in over 40 years, according to the Wall Street Journal.
EnCana is a Canadian energy producer that focuses on producing natural gas, oil and natural gas liquids.
The company has an average short term price target of $16.47, with an individual target high of $31 and a low of $12.
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."