NEW YORK (TheStreet) -- Shares of Brazilian state-owned energy company Petrobras (PBR) plunged 8.3% to $9.72 in afternoon trading Friday after OPEC decided earlier this week not to cut oil production, which could leave the market oversupplied.
Crude oil prices plummeted 6.5% to $69.38 per barrel on Friday, the largest one-day decline since May 2011 and the lowest price since 2010. Brent futures declined to $71.12, the lowest price since July 2010.
"We are seeing continued oversupply," said Bill Hubard, chief economist at Markets.com, according to CNBC. "I think $70 a barrel will be the new norm. We could see oil go considerably lower."
Separately, TheStreet Ratings team rates PETROBRAS-PETROLEO BRASILIER as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate PETROBRAS-PETROLEO BRASILIER (PBR) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."