NEW YORK (TheStreet) -- Shares of Petroleo Brasileiro Petrobras (PBR) are higher by 3.48% to $9.36 in mid-day trading on Friday afternoon, after a statement by a Brazilian congressman and bargain hunting among traders.
The congressman,Eduardo Cunha, said that a requirement in the national oil law that Petrobras must participate in all subsalt exploration and production blocks will be changed, Reuters reports.
Additionally, some of Petrobras gains came as investors were "bargain hunting" following yesterday's 4.5% drop in Petrobras stock, Reuters noted.
Petrobras fell on Thursday on concerns regarding developments in the state-run oil company's ongoing corruption scandal, which includes allegations of bribery.
The company is fighting a battle in a New York City courtroom as it attempts to have a judge dismiss lawsuits brought against it by investors in the wake of the bribery investigation.
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."