The rising short interest in oil companies implies that the worst for oil is yet to come. Data from Markit shows that short exposure in energy sector of S&P 500 (INDEXSP:.INX) is still looming close to the highest mark of the year. On Tuesday, shorts accounted for 3.25% of shares in energy companies. At the beginning of the year, only 1.7% of energy sector shares were out on loan according to a report from WSJ.
Shares of oil majors fall
Meanwhile, a few major names in the energy sector have been hammered over the last week or two. Exxon Mobil Corporation (NYSE:XOM), a favorite long holding among hedge funds, has shed nearly 15% this year. Chevron Corporation (NYSE:CVX) and Royal Dutch Shell plc (ADR) (NYSE:RDS.A) are also down 15%. BP...
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