NEW YORK (TheStreet) -- Shares of BP (BP) are down 1.73% to $39.29 as Brent crude oil fell more than $2 a barrel on Monday, trading at a new five-year low on predictions that oversupply would keep building until next year after OPEC decided not to cut output, Reuters reports.
Brent for January LCOc1 was down $1.82 at $67.25 a barrel by 9 a.m. in New York, having fallen $2.30 to $66.77, its lowest since October 2009.
U.S. crude CLc1 was down $1.24 at $64.60 a barrel, after hitting a session low of $64.14. The U.S. contract, also known as West Texas Intermediate, touched $63.72 last week, its lowest since July 2009.
Adding to the slump, The Sunday Times reported BP could ax middle managers and freeze projects as it grapples with the plummeting oil price, citing finance director Brian Gilvary.
Additionally, the U.S. Supreme Court today rejected BP's attempt to halt payouts to certain businesses that say they are owed money because of losses stemming from the 2010 Gulf of Mexico oil spill, Reuters added.
Separately, TheStreet Ratings team rates BP PLC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate BP PLC (BP) 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 reasonable valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."