NEW YORK (TheStreet) -- Shares of Oasis Petroleum (OAS) - Get Report are dropping by 3.83% to $7.04 on Wednesday morning as oil prices retreat.

The commodity is trading in the red on a new report from the Energy Information Administration that inventories increased by 2.6 million barrels last week, compared to analyst estimates of a 2.5 million barrel decline, Reuters reports.

Crude oil (WTI) is plummeting 3.35% to $36.60 per barrel this morning and Brent oil is declining 3.12% to $36.61 per barrel, according to the CNBC.com index.

Saudi Arabia, the top crude exporter in the world, said it would not limit its oil production, which also pushed oil prices lower today, the Wall Street Journal reports.

"It is a reliable policy and we won't change it," Saudi oil minister Ali al-Naimi told reporters in Riyadh, the Journal noted.

Oasis Petroleum is an independent exploration and production company based in Houston.

Separately, 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. TheStreet Ratings has this to say about the recommendation:

We rate OASIS PETROLEUM INC as a Hold with a ratings score of C-. 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 reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and weak operating cash flow.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The gross profit margin for OASIS PETROLEUM INC is rather high; currently it is at 64.09%. Regardless of OAS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, OAS's net profit margin of 13.71% significantly outperformed against the industry.
  • OAS, with its decline in revenue, slightly underperformed the industry average of 36.8%. Since the same quarter one year prior, revenues fell by 46.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The debt-to-equity ratio of 1.03 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, OAS has a quick ratio of 0.51, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. When compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, OASIS PETROLEUM INC's return on equity is below that of both the industry average and the S&P 500.
  • You can view the full analysis from the report here: OAS