Oasis Petroleum (OAS) Stock Slides with Dropping Oil Prices

Oil is dropping to two and a half-month lows this afternoon, weighing on Oasis Petroleum (OAS) stock.
By Rachel Aldrich ,

NEW YORK (TheStreet) -- Shares of Oasis Petroleum (OAS) - Get Report  are dropping 5.68% to $7.64 this afternoon as oil prices reach two and a half-month lows.

Crude oil (WTI) is falling 2.38% to $43.14 per barrel and Brent crude is down 2.08% to $44.74.

A stockpile of refined products including gasoline despite forecasts for record U.S. summer driving has led to a pessimistic view of the market rebalancing, CNBC reports.

Investors are concerned about a rising global fuel glut. As the dollar strengthens and U.S. drillers add active rigs, analysts said that U.S. oil production may resurge as well.

A decline in U.S. output has been the key to keeping the market balanced recently, CNBC said.

Barclays said in a recent note that global oil demand in the 2016 third quarter was growing at less than a third of the previous year's rate.

Separately, 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.

TheStreet Ratings rated this stock as a "sell" with a ratings score of D.

The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, weak operating cash flow, generally disappointing historical performance in the stock itself and disappointing return on equity.

You can view the full analysis from the report here: OAS

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