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NEW YORK (TheStreet) -- Transocean (RIG) stock is declining 2.88% to $9.11 in midday trading on Monday after lower oil prices weighed on shares of the Swiss offshore drilling contractor.

WTI crude is down 0.96% to $39.08 per barrel on the New York Mercantile Exchange, while Brent crude is decreasing 1.34% to $39.90 per barrel on the Intercontinental Exchange this afternoon.

Barclays and Macquarie analysts warned that market fundamentals are still weak and could push oil prices down to mid-$30 levels or lower, Reuters reports.

Before today's market open, Transocean's stock price target was lowered to $5 from $6 at Barclays, which maintained an "underweight" rating on the stock.

The firm believes the offshore drilling sector will not recover until early 2018, even if oil prices exceed $50 per barrel by the end of 2016.

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"Until restructuring takes place, we don't expect any consolidation and few rig retirements, keeping the massive oversupply of floaters (particularly 6th/7th gen) firmly intact," Barclays said in an analysts note this morning.

Separately, Transocean has a "sell" rating and a letter grade of D+ at TheStreet Ratings because of the company's disappointing stock performance and weak revenue results.

You can view the full analysis from the report here: RIG

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.

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