Crude oil (WTI) is sliding by 0.40% to $49.36 per barrel and Brent crude is dipping by 0.58% to $49.45 per barrel this afternoon.
Marathon Oil is a Houston-based exploration and production that explores for, develops, produces, and markets crude oil and condensate, NGLs, and natural gas.
The price of the commodity is trading in the red as investors are concerned that higher prices could result in more output in an already heavily oversupplied market, the Wall Street Journal reports. Oil rose above $50 per barrel briefly in intraday trading today.
Supply from countries within the Organization of Petroleum Exporting Countries is still strong, with key player Iran's exports having reached 2 million barrels per day, the Journal noted. Output from Iran is expected to reach 2.2 million barrels per day.
Separately, TheStreet Ratings has set a "sell" rating and a score of D on Marathon Oil stock. This is driven by several weaknesses, which TheStreet Ratings believes 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 it covers.
The company's weaknesses can be seen in multiple areas, such as its poor profit margins, weak operating cash flow, generally disappointing historical performance in the stock itself, disappointing return on equity and feeble growth in its earnings per share.
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 articles's author.
You can view the full analysis from the report here: MRO