NEW YORK (TheStreet) -- Petrobras (PBR) - Get Report stock is decreasing 3.94% to $3.54 in afternoon trading on Tuesday after Saudi Arabia's oil minister said the country will not reduce production, sending oil prices down more than 4%.
WTI crude is falling 4.79% to $31.79 per barrel on the New York Mercantile Exchange, while Brent crude is declining 4.12% to $33.26 per barrel on the Intercontinental Exchange this afternoon.
Saudi Arabia believes the market will rebalance with a production freeze among oil-producing countries, Reuters reports. The proposal, however, suggests freezing output close to record high levels.
"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 Brazilian state-run energy company, may close several onshore drilling rigs in the South American country as weak oil prices persist and the company tackles its debt, which is the largest in the oil industry, 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.
You can view the full analysis from the report here: PBR
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.