WTI crude oil for July delivery was down 1.3% to $59.99 a barrel Friday morning, and Brent crude oil for July delivery was down 1.2% to $64.33 a barrel.
Oil prices were falling Friday due to concerns about oversupply before the release of the latest U.S. oil drilling data, according to the Wall Street Journal. Forecasts call for the global supply of crude oil to shrink due to growing demand and less drilling, but some U.S. companies said they can increase production if oil prices remain above $60, accord to the Journal.
On Thursday the International Energy Agency said the recent strength in the oil market was due to stronger demand for the commodity in the first quarter.
Seadrill is an offshore drilling company with operations in the U.S., the U.K., Brazil, Norway, Thailand, Malaysia, 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."