NEW YORK (TheStreet) -- Petrobras (PBR.A) stock is falling 3.56% to $2.44 in afternoon trading on Tuesday after Saudi Arabia's oil minister said the country will not consider cutting output, causing oil prices to decline more than 4%.

WTI crude is decreasing 4.88% to $31.76 per barrel on the New York Mercantile Exchange, while Brent crude is down 4.32% to $33.19 per barrel on the Intercontinental Exchange this afternoon.

Saudi Arabia sees the oil market rebalancing if output is frozen at January levels that were close to record highs, Reuters reports.

"If they freeze production at January levels when you're already over supplied by around a million barrels per day it just prolongs that situation of oversupply," Energy Aspects analyst Dominic Haywood told Reuters.

Additionally, Petrobras, the Brazil-based state-operated oil and gas company, is considering closing several onshore drilling rigs in Brazil as oil prices continue to fall and the company struggles to lower its debt, which is the largest among oil companies, according to Reuters.

Separately, Petrobras has a "sell" rating and a letter grade of D at TheStreet Ratings because of the company's disappointing return on equity, weak operating cash flow, disappointing stock performance and generally high debt management risk.

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You can view the full analysis from the report here: PBR.A

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. 

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