NEW YORK (TheStreet) -- Encana Corp. (ECA - Get Report) shares are rallying 5.04% to $5.74 on Wednesday afternoon as oil prices spiked on a positive report from the Energy Information Administration (EIA).
Crude supplies in the week ended March 11 increased by 1.3 million barrels to total 532.2 million. This is lower than analysts' estimates of a 3.4 million-barrel gain.
"The data is moderately bullish with crude builds less than expected, coupled with strong gasoline demand driven by lower prices at the pump," Chris Jarvis, analyst at Caprock Risk Management told Reuters.
Also pushing futures up was comment from the Qatari oil minister Mohammed Bin Saleh Al-Sada. He said OPEC and non-OPEC oil producers will meet in Qatar, Doha on April 17 to talk about freezing output.
Crude oil (WTI) is higher 4.16% to $37.85 per barrel and Brent crude is spiking 3.07% to $39.93 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