NEW YORK (TheStreet) -- Shares of Continental Resources (CLR - Get Report) are diving by 15.2% to $16.85 on Tuesday afternoon, as the International Energy Agency says the oil market will remain oversupplied.
Oil prices could decline further this year as the market faces an "enormous strain" on its ability to absorb new supplies from producers such as Iran, the IEA said, the Wall Street Journal reports.
"While the pace of stock-building eases in the second half of the year as supply from non-OPEC producers falls, unless something changes, the oil market could drown in oversupply," the IEA said, Bloomberg noted. Prices "could go lower."
The oil market could have a surplus of 1.5 million barrels a day in the first half of 2016, the Paris-based world energy monitor added.
Additionally, international sanctions against Iran were lifted over the weekend, allowing the country to revive oil exports, Bloomberg reports.
Iran could add 300,000 barrels a day by the end of the first quarter and 600,000 barrels a day by the middle of the year, the IEA noted.
Crude oil (WTI) is tumbling by 3.57% to $28.37 per barrel this afternoon, while Brent crude is increasing by 1.02% to $28.81 per barrel, according to the CNBC.com index.
Continental Resources is an Oklahoma City-based crude oil and natural gas exploration and production company.
Separately, TheStreet Ratings Team has a sell rating with a score of D+ on Continental Resources. This is driven by multiple weaknesses, which it believes 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 it covers.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: CLRCLR data by YCharts