NEW YORK (TheStreet) -- Encana Corp. (ECA - Get Report) shares are tumbling 4.29% to $5.25 on Tuesday afternoon as oil prices were retreating on expectations that Wednesday's weekly oil inventory data will show another supply build.
The Energy Information Administration (EIA) report will likely show crude inventories at record highs for the fifth consecutive week with shale oil production down, Reuters reports.
Over the past few weeks, oil prices were showing gains on hopes that major oil exporters were planning to meet and discuss freezing production at January levels.
However, "The rally is now retreating on fears that OPEC will continue to flood the market with oil in a world where demand may falter," Phil Flynn, analyst at the Price Futures Group told Reuters.
Crude oil (WTI) is slumping 2.99% to $36.07 per barrel and Brent crude is sliding 2.56% to $38.52 per barrel.
Based in Canada, Encana engages in the development, exploration, production, and marketing of natural gas, oil, and natural gas liquids in Canada and the U.S.
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 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: ECA