Short interest on energy stocks ticked up amid earnings season; Conoco Phillips remains least shorted (NYSEARCA:XLE)

Bets against energy stocks were higher at the end of January as the fourth quarter earnings season began to gather pace. Average short interest across energy stocks in the S&P 500 index rose 10 basis points to 2.28% of shares floating at the end of the month.

The S&P 500 Energy sector (NYSEARCA:XLE) is up 2.5% compared to the benchmark index (SP500), which climbed 6.2% from the start of the year.

Stocks with the largest and least short positions

Ranked by short interest as a percentage of shares float

Occidental Petroleum (OXY) was the most-shorted energy stock, with 52.1 million shares sold short as of January 31, or 5.95% of the shares float.

APA Corp. (APA) was the second most shorted energy stock at 5.45% of shares float, followed by EQT (EQT) with a short interest of 3.20%, Diamondback Energy (FANG) with 3.11%, and Valero (VLO) with 2.78%.

Conoco Phillips (COP) is the least shorted stock, with 11.96 million shares sold short, or 1.01% of the shares float, followed by EOG Resources (EOG) and SLB (SLB), with short interest of 1.16% and 1.25%, respectively.

The top two contributors to the energy index, Exxon Mobil (XOM) and Chevron (CVX), have short interest of 2.34% and 2.6%, respectively.

Industry Analysis

Average short interest as a percentage of floating shares

Oil, Gas, and Consumable Fuels remains the most shorted industry within the energy sector, with 2.37% short interest as of January-end, down from 2.27% during mid-January.

Energy Equipment and Services was the least shorted industry within the sector, with 1.81% short interest as of January-end, up from 1.70% during mid-January. The subsector saw the biggest basis-point rise within the overall energy umbrella.

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