Crude prices dropped as the dollar strengthened and investors took profits following the rally.
Oil prices hit an almost five-month high on Wednesday after the U.S. Energy Information Administration released weekly inventory data that showed crude oil stockpiles fell for the first time since last year. The data confirmed expectations that the crude oil oversupply in the U.S. is prepared to shrink thanks to reduced spending on exploration and production on the heels of last year's plummet in prices.
The dollar strengthened as initial U.S. jobless claims stayed near 15-year lows. Oil becomes more expensive for buyers who use foreign currencies as the dollar gets stronger.
WTI crude fell 2.72% to $59.27 at 11:10 a.m., while Brent crude fell 2.38% to $66.16 at 11:10 a.m., according to CNBC.
Separately, TheStreet Ratings team rates SEADRILL LTD as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SEADRILL LTD (SDRL) 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 notable return on equity, attractive valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, weak operating cash flow and a generally disappointing performance in the stock itself."