NEW YORK (TheStreet) -- Shares of Marathon Oil (MRO - Get Report) are lower by 5.9% to $12.75 in early afternoon trading on Tuesday, as the decline in oil prices weighs on stocks within the energy sector.
Oil prices are down as investor concerns over demand out of China and the continuing global supply glut are renewed.
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 remains high.
Also weighing on oil is China's manufacturing data, which showed that the economy of the world's number two oil consumer 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.
Crude oil (WTI) is slipping by 2.88% to $43.49 per barrel this afternoon and Brent crude is sliding by 2.14% to $44.85 per barrel.
Marathon Oil is a Houston-based energy company that explores for, produces and markets crude oil and condensate, NGLs and natural gas.
Separately, TheStreet Ratings has set "sell" rating and a score of D on Marathon Oil stock. This is driven by a number of negative factors, which TheStreet Ratings believes 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 it covers.
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 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's author.
You can view the full analysis from the report here: MRO