NEW YORK (TheStreet) -- Shares of Transocean LTD (RIG) are plummeting by 9.76% to $21 in early afternoon trading on Friday, as energy stocks drop due to the decline in oil prices and the Organization of Petroleum Exporting Countries' decision not to cut production, Reuters reports.
Investors told Reuters OPEC's decision would leave "heavily oversupplied" oil markets.
Brent Crude is down 6.5% and traded close to $73 a barrel on Friday, a new four-year-low, resulting from OPEC's decision, Reuters noted.
"We are seeing continued oversupply. I think $70 a barrel will be the new norm. We could see oil go considerably lower," said Bill Hubard, the chief economist at Markets.com, Reuters added.
Separately, TheStreet Ratings team rates TRANSOCEAN LTD as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TRANSOCEAN LTD (RIG) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself."
You can view the full analysis from the report here: RIG Ratings ReportRIG data by YCharts