Here’s Why BP Stock is Falling Today
NEW YORK (TheStreet) -- BP (BP) - Get Report stock is decreasing 3.18% to $32.55 in afternoon trading on Tuesday after oversupply concerns pressured crude oil prices.
WTI crude is falling 3.15% to $43.37 per barrel on the New York Mercantile Exchange, while Brent crude is down 2.18% to $44.83 per barrel on the Intercontinental Exchange this afternoon.
OPEC output increased last month with Saudi Arabia production at 10.15 million barrels per day in April, Reuters reports.
Saudi Arabia is expected to boost production to 10.5 million barrels per day in the near term, sources told Reuters.
In the U.S., the Energy Information Administration is expected to report an increase of 1.4 million barrel for domestic inventories tomorrow morning, according to analysts surveyed by Reuters.
Additionally, BP, a London-based oil and gas company, agreed to drop a lawsuit related to payments made to the Gulf Coast seafood industry after the Deepwater Horizon oil spill in 2010, Bloomberg reports.
BP was seeking to avoid paying more than half of the $2.3 billion in compensation because the company alleged that many claims were fraudulent. BP will continue to pursue fraud charges against a law firm related to the seafood fund, Bloomberg added.
Separately, BP has a "hold" rating and a letter grade of C at TheStreet Ratings because of the company's weaknesses including disappointing return on equity, generally disappointing stock performance and weak operating cash flow.
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.
