The U.S. oil rig count dropped by 8 to 343 this week, the fifth consecutive weekly drop, and the lowest level since November 2009, Baker Hughes said this afternoon.
It appears that market sentiment is turning more positive as it sees signs of an easing supply glut.
"The current rally is driven by a market sentiment that is becoming more and more convinced that the worst is over and the global oil market rebalancing process is already in play," Dominick Chirichella, senior partner at the Energy Management Institute told Reuters.
Crude oil (WTI) is jumping by 1.48% to $43.82 per barrel and Brent crude is spiking by 1.57% to $45.23 per barrel.
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 article's author.
You can view the full analysis from the report here: ECA