NEW YORK (TheStreet) -- Shares of Petroleo Brasileiro Petrobras (PBR) are slumping, down 6.09% to $9.10 in midday trading Tuesday, after analysts at Goldman Sachs Group predicted that oil will tumble, according to Bloomberg.
Goldman said in a report this morning that it sees U.S. crude falling back to 2015 lows, weighed down by both "hydrocarbon and capital surpluses."
The firm forecast that a continuing surplus of oil would drag prices down to $45 a barrel by October.
In addidion, Brazil's Finance Ministry is seeking reimbursement of about $6.6 billion from Petrobras as it reworks the price of production rights given as part of a $70 billion share sale, Bloomberg added.
Yesterday, Petrobras shares gained after the beleaguered Brazilian state-owned energy company reported a surprise first-quarter earnings beat last Friday.
Brent crude for July delivery was down 2.6% to $64.55 a barrel as of 11:48 a.m. ET today, while U.S. crude for June delivery fell 3% to $57.65 a barrel.
Brazil-based Petrobras is an integrated oil and gas company, engaged in the research, extraction, refining, processing, trade and transport of oil from wells, shale and other rocks.
Separately, TheStreet Ratings team rates PETROLEO BRASILEIRO SA- PETR as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate PETROLEO BRASILEIRO SA- PETR (PBR) a SELL. This is driven by multiple weaknesses, 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, generally high debt management risk, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."