Oil and Gas Short Sellers Bet on Another Drop in Crude Prices
Short interest in energy stocks mostly rose in the two-week reporting period that ended November 13. Crude prices have jumped and short sellers seem to think that the price will come down again.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Crude oil traded around $45.20 a barrel at noon Wednesday, up by about $3.00 (about 7.1%) a barrel over the past week. Trading broke above $45 a barrel Tuesday morning.
Of the companies we watch, short interest increased on five of six energy stocks during the two-week reporting period ending November 13. Share prices increased significantly on all six stocks during that time.
Chevron Corp. (NYSE: CVX | CVX Price Prediction) saw short interest rise by 3% to 14.8 million shares, which represents about 1.1% of the company’s float. Days to cover remained at two. In the two-week short interest period, the share price jumped by about 19.5%. The stock’s 52-week trading range is $51.60 to $122.72, and it traded at $93.40 on Wednesday.
Exxon Mobil Corp. (NYSE: XOM) short interest rose by 1% to 50.8 million shares, or about 1.2% of the company’s float. Days to cover remained at two. In the two weeks to November 13, the share price rose by 13.3%. The 52-week trading range is $30.11 to $71.37, and shares traded at $41.10 on Wednesday.
[nativounit]
BP PLC (NYSE: BP) saw a drop of 20% in short interest during the two-week period. About 0.2% of the total float, or 8.1 million American depositary shares (ADSs), were short, and the days to cover remained at one. The shares jumped by about 23.8% over the two-week period and traded Wednesday at $21.40, in a 52-week range of $14.74 to $40.08.
ConocoPhillips (NYSE: COP) short interest increased by 34% in the first two weeks of November. Some 34.6 million shares were short, representing about 3.2% of the company’s total float. Days to cover rose from three to four, and the stock price rose by 23.6% during the period. Shares traded Wednesday at $44.20, in a 52-week range of $20.84 to $67.13.
Petróleo Brasileiro S.A.’s (NYSE: PBR) short interest soared by 73% during those two weeks. Some 34 million ADSs were short as of November 13, about 0.8% of the total float. Petrobras traded at $10.00 on Wednesday, in a 52-week range of $4.01 to $16.30. It added nearly 29% in the short interest period, and days to cover rose from one to two.
Occidental Petroleum Corp. (NYSE: OXY) saw short interest decrease by 27% to 34.7 million shares. Days to cover remained at two, and about 3.7% of the company’s shares were short. In the two weeks to November 13, the share price jumped by more than 29%. The 52-week range is $8.52 to $47.58, and shares traded Wednesday at $16.50.
[recirclink id=817471][wallst_email_signup]
Contact [email protected] for any questions or corrections.
Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
