NEW YORK (TheStreet) -- Devon Energy Corp. (DVN - Get Report) shares are sliding 0.48% to $24.66 on Monday as oil prices slumped on OPEC anticipating lower demand for crude in 2016 than it previously thought.
"In 2016, demand for OPEC crude is expected to stand at 31.5 million barrels per day, 0.1 mb/d, lower than last month, and representing an increase of 1.8 mb/d over the previous year," OPEC noted. Specifically, this revision is part due to competing non-OPEC supply, Reuters reports.
Oil exporters have been talking for weeks about a deal to curb crude production however, there are now roadblocks, the Wall Street Journal reports.
For instance, Iran over the weekend said it still intends to boost its production level back up to 4 million barrels a day, up from its previous 3 million barrels a day, according to MarketWatch.
Given these bearish sentiments, it appears that the supply glut isn't going away any time soon.
Crude oil (WTI) is tumbling 3.56% to $37.13 per barrel and Brent crude is slipping 2.05% to $39.56 per barrel.
Based in Oklahoma City, Devon Energy is an independent energy company that primarily engages in the exploration, development, and production of oil, natural gas, and natural gas liquids (NGLs) in the U.S. and Canada.
Separately, TheStreet Ratings currently has a "Sell" rating on the stock with a letter grade of D.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally high debt management risk, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
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' author.
You can view the full analysis from the report here: DVN