NEW YORK (TheStreet) -- Shares of Transocean (RIG) were retreating, lower by 2.65% to $18.35 in midday trading Monday, as oil production by the Organization of the Petroleum Exporting Countries stays high, according to Reuters.
A Reuters survey showed that OPEC produced a two and a half year high of 31.22 million barrels of oil per day during the month of May amid the global oil supply surplus.
Also, the slowing growth in China and the rise in oil production in Saudi Arabia are weighing down oil prices further, Reuters added.
July Brent crude fell by 1.77% to $64.40 a barrel as of 12:39 p.m. ET today, while U.S. crude for July delivery was down 1.39% to $59.46 a barrel as of 12:40 p.m. ET.
Switzerland-based Transocean is an international provider of offshore contract drilling services for oil and gas wells, operating under the contract drilling services and drilling management services segments.
Separately, TheStreet Ratings team rates TRANSOCEAN LTD as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TRANSOCEAN LTD (RIG) a SELL. This is driven by some concerns, 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 disappointing historical performance in the stock itself and feeble growth in its earnings per share."