Stocks: (XOM)(COP)(CVX)
Between November and December, the short interest in Exxon rose 5.9 million shares to 58.5 million. Over at Chevron, shares short were up 5.1 million to 32.6 million. At Conoco shares short went up 4.5 million to 19.6 million.
Seems like a pattern.
All of the stock are up a ton. But, with a 70% price increase over the last two years, Exxon takes the cake. The stock now trades at over $74.
Falling oil prices and warm weather may be encouraging shorts to move into Exxon and other big oils. If winter weather continues to stay mild, demand is simply going to stay down. Global warming is not exactly the friend of the oil companies.
OPEC’s plan to cuts production also did not move oil off its $62 price much. It may be that supplies are just too large now.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.