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Why Short Interest in BP Rose

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Nov. 20 2020, Updated 5:11 p.m. ET

Short interest in BP

BP (BP) has seen a marginal rise in its short interest (percentage of outstanding shares) from 0.16% on February 2 to the current level of 0.22%. Rising short interest usually means that the bearish sentiment for a stock has increased. Also, during the same period, BP’s stock price has fallen by 9.7%.

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Why the change in sentiment?

The rise in BP’s short interest since February 2 could be due to weaker markets and lower oil prices. In February, the broader market indicator, the SPDR S&P 500 ETF (SPY) fell 3.5%. For more on the broader market decline, read Will Sell-Off Trends Continue or Reverse in March?

Also, in the same period, crude oil prices slumped 6.3%. Oil prices are quite relevant for integrated energy companies, as they are the main determinant of the company’s upstream earnings. For more on oil price analysis, read Oil Could Continue Its Downward Journey This Week.

Peers’ short interest

BP’s peers Total (TOT), YPF (YPF), and Suncor Energy (SU) have also witnessed a rise in their short interest by 0.02%, 0.21%, and 0.05%, respectively, since February 2. Currently, TOT, YPF, and SU have short interests of 0.09%, 0.69%, and 0.27%, respectively. During the same period, TOT, YPF, and SU have seen their stock fall 1.3%, 2.9%, and 10.1%, respectively.

Move on to the next part to see where BP’s valuation stands.

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