Short Interest in Oil and Gas Sector Reflects Falling Crude Oil Prices

Energy

Published: December 26, 2014 9:15 am

Last Updated: April 28, 2020 4:45 am

Short interest in large oil and gas stocks rose in the two-week period to December 15 for all but one of the companies we follow. That should be no surprise as the collapse in crude oil prices appears to have set no floor and share prices are floundering as a result. Volatility in the oil market has increased in the past week or so, and could have an impact on short interest in these stocks. As of December 19, short positions outnumbered longs on the NYMEX futures market for light, sweet crude oil.

Chevron Corp. (NYSE: CVX) saw short interest rise 10.9% to 17.5 million shares. About 0.9% of Chevron’s float is now short and days to cover is two. The share price fell about 12.4% in the two-week period and is down about 9% for the year to date. The stock closed at $113.55 Wednesday, in a 52-week range of $100.15 to $135.10.

Exxon Mobil Corp. (NYSE: XOM) saw short interest decline 4.2% to 41.1 million shares, about 1% of the company’s float and two days to cover at the average daily trading volume. In the two-week period to December 15, the share price fell 8% and the stock is down more than 7% year-to-date. Shares closed Wednesday at $93.80, in a 52-week range of $86.19 to $104.76.

Valero Energy Corp. (NYSE: VLO) posted a gain of 35.4% in short interest, to a total of 14.37 million shares. Short interest comprises about 2.8% of Valero’s float and days to cover is two. During the two-week short interest reporting period, the stock price fell 9.5%, and shares have lost more than 1% year-to-date. The shares closed at $49.79 Wednesday, in a 52-week range of $42.53 to $59.69.

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Short interest in Chesapeake Energy Corp. (NYSE: CHK) rose 25.2% to 53.9 million shares, which represents about 8.2% of the company’s float and three days to cover. The share price lost about 25% in the two-weeks to December 15, and the stock is down about 23% in 2014. The stock closed at $19.84 on Wednesday, in a 52-week range of $16.41 to $29.92.

Oilfield services giant Schlumberger Ltd. (NYSE: SLB) saw short interest rise 8.2% to 15.28 million shares, about 1.2% of Schlumberger’s float and one day to cover at the average daily volume. In the two-week short interest period, shares dropped about 8%, and the stock is down about 3.4% for the year to date. The stock closed at $87.06 Wednesday, in a 52-week range of $78.47 to $118.76.

National Oilwell Varco Inc. (NYSE: NOV) posted a rise in short interest to 15.83 million shares, up 10.7% in the two-week period. That represents about 3.7% of the company’s float and three days to over. For the two-week period, the share price fell 13%, and shares are down nearly 8% year-to-date. Shares closed at $66.18 on Wednesday, in a 52-week range of $660.88 to $86.55.

ALSO READ: The 5 Most Shorted New York Stock Exchange Stocks in Mid-December

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