WTI crude is falling 0.50% to $49.31 per barrel on the New York Mercantile Exchange, while Brent crude is declining 0.60% to $49.44 per barrel on the Intercontinental Exchange this afternoon.
Both international and domestic prices reached $50 per barrel earlier today because of production outages, but the market still remains oversupplied, Reuters reports.
"I am maintaining my oil view at neutral with a short-term bias to the upside," Energy Management Institute senior partner Dominick Chirichella told Reuters. "The global surplus still exists and there is still a possibility that oil prices could retrace further."
If oil prices remain above $50 for too long, U.S. produces could boost operations again, adding crude oil to an oversupplied market and triggering a steep decline in prices.
Crude production has slowed in parts of Canada, Nigeria, Libya and Venezuela, reducing overall output by almost 4 million barrels a day, Reuters added.
Shares of Transocean, a Swiss offshore drilling contractor, are also being pressured by fellow drilling services company Seadrill (SDRL), which reported weak quarterly results this morning.
Separately, Transocean has a "sell" rating and a letter grade of D+ at TheStreet Ratings because of the company's weaknesses, including generally disappointing historical performance in the stock.
You can view the full analysis from the report here: RIG
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.