NEW YORK (TheStreet) -- Shares of Brazilian state-owned energy company Petrobras (PBR) fell more than 7.5% to a new one-year low of $6.56 in morning trading Monday as oil prices touched a fresh five-year low.
Brent crude for January delivery fell $1.57 to $60.28 a barrel in Asian trade, its lowest price since July 2009. Brent was trading at $61.81 at 10:25 a.m.
Oil prices have been sliding for months and continue to decline near the year's end as OPEC pledged to maintain production despite a global oversupply. The organization has said cutting output would have little effect on price and would only lead to a surrender of some market share, according to CNBC.
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"The decision has been made. Things will be left as is," OPEC Secretary-General Abdullah al-Badri said at a conference in Dubai on Sunday. "We agreed that it is important to continue with production (at current levels) for the...coming period."
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."