OXY and APA Among Most Shorted S&P 500 Energy Stocks in Mid-January

Bets against energy stocks are slightly lower from the end of 2023. The average short interest across S&P 500 energy stocks dipped 1 basis point to 2.18% of shares float in mid-January. This drop comes as the S&P 500’s energy sector (NYSEARCA:XLE) is down 0.5%, while the broader S&P 500 has climbed 2.86% since the start of the year.

A Close Look at Industry Analysis

Despite the relative decline in bets against energy stocks, the Oil, Gas & Consumable Fuels segment remains the most shorted industry within the energy sector, with 2.27% short interest as of mid-January. This figure is down slightly from 2.28% at the end of 2023. On the other hand, Energy Equipment and Services stands as the least shorted industry within the sector, with 1.70% short interest as of mid-January, slightly up from 1.68% at the end of 2023.

The short interest in the energy sector evidently reflects the ongoing volatility and market dynamics that investors are navigating.

Analysis of Specific Stocks

Examining specific stocks, it is noteworthy that Exxon Mobil (XOM), Chevron (CVX), and ConocoPhillips (COP) – the top three contributors to the index – have short interest of 2.18%, 2.47%, and 1.08% respectively.

However, delving deeper into the numbers, it is alarming to note that Occidental Petroleum (OXY) emerged as the most shorted energy stock, with 50.1M shares sold short as of January 12, representing 5.73% of the shares float.

APA Corp (APA) followed closely as the second most shorted energy stock at 4.94% of shares float, trailed by EQT (EQT) with short interest of 3.66% and Diamondback Energy (FANG) with 3.27%.

ConocoPhillips (COP) is the least shorted stock, with 12.8M shares sold short, accounting for 1.08% of the shares float, followed by EOG Resources (EOG) and SLB (SLB) with short interest of 1.11% and 1.23% respectively.