WTI crude is down 2.23% to $38.51 per barrel on the New York Mercantile Exchange, while Brent crude is falling 2.26% to $39.36 per barrel on the Intercontinental Exchange this afternoon.
Oil prices were pressured by rising concerns over the crude oil surplus and expectations for an increase in supplies, Reuters reports.
"There is a rebalancing on the way, but we are still running a surplus and stocks are building up as far as we can see," SEB commodities analyst Bjarne Schieldrop told Reuters. "Long positioning in Brent is at record highs and vulnerable for a bearish repositioning."
OPEC, Russia and oil-producing countries will meet next month to discuss freezing production, but Iran is not expected to participate in the output freeze, Reuters added.
Bermuda-based Seadrill is an offshore drilling contractor for the oil and gas industry.
Separately, Seadrill has a "sell" rating and a letter grade of D at TheStreet Ratings because of the company's generally high debt management risk, disappointing return on equity and disappointing stock performance.
You can view the full analysis from the report here: SDRL
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.