A stronger dollar, which makes oil more expensive for foreign investors, and the U.K.'s unexpected decision to exit the European Union are pushing oil prices lower, Reuters reports.
WTI crude is down 2.79% to $46.31 per barrel on the New York Mercantile Exchange, while Brent crude is declining 2.64% to $47.13 per barrel on the Intercontinental Exchange this morning.
Oil demand in the U.K. is expected to decline just 1%, or about 16,000 barrels per day, if the U.K.'s economic growth is negatively affected by the "Brexit," Goldman Sachs analysts noted, according to Reuters.
Oversupply continues to be the main concern in the oil market, as well as Chinese demand and the end of output outages, Morgan Stanley analysts wrote in a note, Reuters added.
Separately, BP has a "hold" rating and a letter grade of C at TheStreet Ratings because of the company's good cash flow from operations and largely solid financial position with reasonable debt levels by most measures, which offsets deteriorating net income, poor profit margins and disappointing return on equity.
You can view the full analysis from the report here: BP
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.