Petrobras (PBR.A) Stock Falling Today on Lower Oil Prices
NEW YORK (TheStreet) -- Shares of Petroleo Brasileiro Petrobras (PBR.A) are falling by 3.7% to $5.47 in afternoon trading Tuesday, as a stronger dollar is pushing down oil prices.
The strength in the dollar affects commodities like oil, that are priced in dollars by making them more expensive for holders of other currencies, according to Reuters.
WTI crude for April delivery was trading down 3.08% to $48.46 as of 2:14 p.m. ET today, while Brent crude was also down 3.5% to $56.48 a barrel.
Also, the Energy Information Administration revised its 2015 domestic oil production outlook today. The agency expects total oil production to increase to 9.35 million barrels per day, higher than the 9.3 million barrels per day forecast from last month.
Yesterday, a Brazilian court outlined the alleged use of Swiss bank accounts for bribes in the Petrobras scandal in its documents, the Financial Times reported.
A former Petrobras executive and a key witness said that he laundered about $100 million in bribes partly through accounts in several Swiss banks, FT added.
Brazil-based Petrobras is an integrated oil and gas company, engaged in the research, extraction, refining, processing, trade and transport of oil from wells, shale and other rocks.
Separately, TheStreet Ratings team rates PETROBRAS-PETROLEO BRASILIER as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate PETROBRAS-PETROLEO BRASILIER (PBR.A) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and poor profit margins." You can view the full analysis from the report here: PBR.A Ratings Report