NEW YORK (TheStreet) -- Shares of Petrobras (PBR) were lower by 1.26% to $9.01 in midday trading Thursday, as oil prices decline after the World Bank lowered its global economic growth forecast, according to Reuters.
The World Bank expects the global economy to expand 2.8% this year, down from its prior 3% estimate given in January.
Also, oil prices are falling due to the stronger dollar. A stronger greenback makes commodities price in dollars more expensive for buyers using other currencies, Reuters noted.
Brent crude for July delivery was lower by 1.48% to $64.73 a barrel as of 12:13 p.m. ET, while U.S. crude for July delivery was down 1.64% to $60.42 a barrel today.
Yesterday, crude prices rallied following the release of the Energy Information Administration data showing a bigger than expected drop in inventories.
According to the EIA, crude stocks fell by 6.8 million barrels last week, much higher compared to the decline of 1.7 million barrels analysts were expecting.
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 a number of negative factors, 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."