Short bets against energy stocks rise to highest since 2020 - S&P Global

Arch Resources

02/03/2022 17:53

** S&P Global Market says short sellers are increasing their
bets against energy stocks to the highest level in more than a
year
    ** Short sellers seem to believe that the recent rally in
energy stocks may be petering out, even as oil prices surge to
their highest levels since 2014, says S&P Global 
    ** Arch Resources Inc  ARCH.N , a coal and processing
company, was the most-shorted energy firm and second
most-shorted company across sectors as of mid-February,
according to the data
    ** S&P data shows short interest in ARCH was at 35.4%, up
from 21.6% a year ago
    ** "Short sellers appear to have little interest in the five
largest energy stocks on the S&P 500, which all have short
interest below the S&P 500 average of 2.18%"
    ** Short sellers bet on a stock's decline by selling
borrowed shares in hopes of buying them later at a lower price
    ** Crude marched higher beyond $110 a barrel on Wednesday,
responding to a flood of divestment from Russian oil assets by
major companies and expectations that the market will remain
short of supply for months to come  O/R 

 (Reporting by Arunima Kumar in Bengaluru)
 ((Arunima.Kumar@thomsonreuters.com; Twitter: https://twitter.com/Aru_Kumar94))