NEW YORK (TheStreet) -- Exxon Mobil (XOM) shares are down 1.3% to $83.99 in afternoon trading on Friday as falling oil prices put pressure on the oil sector today.
Oil prices are falling after Saudi Arabia said that it would raise output to record highs even as a global supply glut continues to push prices down.
The strategy is part of OPEC's previously announced plan to maintain global market share by maintaining and even increasing its output even as U.S. shale production reaches record levels.
Oil prices have fallen roughly 45% from the highs they reached a year ago, according to CNBC.
Industry standard Brent crude is down 1.35%, or 88 cents, to $64.23 per barrel, while West Texas crude is declining 1.37%, or 83 cents, to $59.94 per barrel in trading today.
TheStreet Ratings team rates EXXON MOBIL CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate EXXON MOBIL CORP (XOM) 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 reasonable 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, poor profit margins and weak operating cash flow."