Energy

Short Interest in Major Oil Companies Falls, Led by Exxon

Douglas A. McIntyre

Published: March 25, 2016 9:45 am

Last Updated: January 13, 2020 11:32 am

Many short sellers backed away from mega-oil and large energy-related companies in the two-week period that ended March 15. The retreat was led by a drop in shares sold short in Exxon Mobil Corp. (NYSE: XOM), the world’s largest energy company, which declined 5.5 million, or 11%, to 46.4 million. Exxon’s share price has recovered somewhat from a brutal sell-off and is up nearly 8% so far this year to $84.

The action makes sense, based on the recovery of oil prices, which have risen from less than $29 to over $40 in two months. Ironically, perhaps, much of the recent gain has been attributed to short covering.

Following suit, short sellers in Conoco Philips (NYSE: COP) dropped their positions by 9.3 million, or 26%, to 26.1 million.

Even troubled Petróleo Brasileiro S.A. (NYSE: PBR) shed some short sellers. Petrobras shares sold short shrank by 11 million to 128 million. It was the ninth most shorted stock traded on the New York Stock Exchange, based on share volume, for the most recent period.

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