WTI crude oil for July delivery was up 3 % to $59.87 a barrel early Tuesday afternoon, and Brent crude oil for July delivery was up 3.2% to $64.67 a barrel.
Oil prices were falling after the U.S. Energy Information Administration said it expects shale oil production to fall by 91,000 barrels a day to 5.5 million barrels a day in July when compared to June production rates, according to the Wall Street Journal.
High shale oil production in the U.S. contributed to the recent record high U.S. oil stockpile levels and helped bring down oil prices last year.
Seadrill is an offshore drilling company incorporated in Bermuda and managed from London with operations in the U.S., U.K., Norway, Thailand, Brazil, Indonesia, and other countries.
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 revenue growth, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."