NEW YORK (TheStreet) -- Shares of Nabors Industries (NBR) are down by 5.78% to $14.81 in early afternoon trading on Tuesday, as some energy and related stocks decline due to the retreat in the price of oil.
A strong dollar and the possibility of that U.S. shale producers will increase drilling activity are driving the commodity's price lower, Reuters reports.
Nabors Industries is a Hamilton, Bermuda-based oil, natural gas, and geothermal on land drilling contractor.
"The main factor weighing on prices is the significantly appreciating U.S. dollar," said Carsten Fritsch, analyst at Commerzbank told Reuters. "What is more, the decline in drilling activity in the U.S. that has been ongoing for 23 weeks appears to have stopped."
Crude oil (WTI) is lower by 2.66% to $58.13 per barrel and Brent crude is slipping by 2.88% to $63.63 per barrel according to the CNBC.com index.
The dollar is gaining by 0.89% on The Wall Street Journal dollar index.
An increase in drilling in the U.S would reduce the possibility of a tighter oil market in the coming months, Reuters noted, adding that this was one factor that had helped Brent rise from an almost six-year low close to $45 in January.
Separately, TheStreet Ratings team rates NABORS INDUSTRIES LTD as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate NABORS INDUSTRIES LTD (NBR) 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 increase in net income, expanding profit margins and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself."