NEW YORK (TheStreet) -- Petrobras (PBR.A - Get Report) stock is retreating 6.06% to $4.72 in late morning trading on Monday after oil prices dropped due to oversupply concerns.

Shares of Brazil's state-run energy company could increase because of political reform in the South American country, according to Barron's.

Petrobras' stock could also benefit from firmer oil prices, a stronger Brazilian currency and a drop in Brazil's interest rate, which could help Petrobras reduce its dollar-denominated debt.

The company's stock remains difficult to value because of Brazil's interference in Petrobras' capital structure and the government's rules on gasoline prices, Barron's added.

Also, prices of crude oil are falling today after Iran's deputy oil minister said the country will continue to boost crude production and exports, Reuters reports. Additionally, the reduction in U.S. oil rigs is slowing, creating concerns that oversupply will persist.

WTI crude is declining 0.93% to $47.96 per barrel on the New York Mercantile Exchange, while Brent crude is down 1.52% to $47.98 per barre in the Intercontinental Exchange this morning.

Separately, Petrobras has a "sell" rating and a letter grade of D at TheStreet Ratings because of the company's deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing stock performance.

You can view the full analysis from the report here: PBR.A

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.