NEW YORK (TheStreet) -- Encana Corp. (ECA - Get Report) shares are skyrocketing 11.58% to $6.99 on Tuesday as oil prices surged after Russia and Saudi Arabia agreed to halt production ahead of the producers meeting in Doha on Sunday.
The two oil giants reached a consensus today about an output freeze and that the final decision will not depend on Iran, Reuters reports, citing Russia's Interfax news agency.
"People are now realizing that this OPEC meeting could be a historic turning point for the market," Phil Flynn, analyst at Price Futures Group stated.
However, other analysts are still bearish on the saturated oil market, saying that this isn't the first time Russians have come out and commented on a production freeze being imminent, Reuters added.
Crude oil (WTI) is jumping 4.39% to $42.13 per barrel and Brent crude is up 4.32% to $44.68 per barrel.
Based in Calgary, 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