NEW YORK (TheStreet) --Shares of WPX Energy (WPX - Get Report) are down by 6.95% to $8.83 on Tuesday morning, as some stocks within the energy and related sectors take a hit from the decline in the price of oil.
The commodity is trading in the red as investor concerns over demand out of China and the continuing global supply glut are renewed.
Crude oil (WTI) is falling by 2.68% to $43.58 per barrel and Brent crude is dipping by 1.94% to $44.94 per barrel this morning.
Prices recently hit five-month highs as a result of production outages in some parts of the world and expectations of a decline in output from the U.S., the Wall Street Journal reports.
Recent production and inventory data has shown signs that output from around the world is still high.
Also weighing on oil is China's manufacturing data, which showed that the economy of the no. 2 oil consumer in the world fell in April, the Journal said.
Additionally, it was reported yesterday that OPEC upped its crude production to 32.64 million barrels per day in April, adding to the global supply glut.
WPX Energy is a Tulsa, OK-based independent oil and natural gas exploration and production company.
Separately, TheStreet Ratings has set a "sell" rating and a score of D on WPX Energy stock.
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's author.
This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally high debt management risk and generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: WPX