NEW YORK (TheStreet) -- Shares of Petroleo Brasileiro Petrobras (PBR.A) were sinking, down 5.84% to $7.99 in midday trading Tuesday, as oil prices decline on the possibility that U.S. shale oil producers may increase drilling activity, according to Reuters.
Last Friday, data compiled by Baker Hughes (BHI) showed that U.S. drillers reduced the number of rigs by just one.
Analysts as Goldman Sachs said oil prices were at a level that would spur activity, Reuters reports.
Additionally, analysts at Morgan Stanley said the dollar may strengthen further, which would drive oil prices down.
The strength in the dollar affects commodities like oil, that are priced in dollars by making them more expensive for holders of other currencies, Reuters noted.
WTI crude for July delivery was trading down 2.66% to $58.13 as of 12:27 p.m. ET today, while Brent crude for July delivery was also down 2.93% to $63.60 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) a SELL. This is driven by a few notable 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 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."