How Are Short Interests in Refining Stocks Trending?



Mixed trend in short interest

Short interest (percentage of outstanding shares) in Marathon Petroleum (MPC), Andeavor (ANDV), Valero Energy (VLO), and Phillips 66 (PSX) has seen a mixed trend since March 29. While short interest in ANDV and PSX has fallen, it’s risen in MPC and VLO.

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Short interest rises in MPC and VLO

Short interest in MPC has risen 0.21% since March 29 to its current level of 2.2%. This rise could mean that the bearish sentiment for MPC has increased, assuming all else is equal. In the stated period, MPC stock has risen 8%.

Short interest in VLO has risen 0.36% since March 29 to its current level of 2.6%. Valero stock has risen 32% in the same period.

The rise in bearish sentiments in MPC could be due to its dull first-quarter numbers, its acquisition of ANDV, or both. In VLO’s case, though RIN (renewable identification number) prices are weakening, the expense continues to dent the company’s earnings, which could be why its short interest has risen.

Short interest falls in ANDV and PSX

Since March 29, ANDV’s short interest has fallen 0.02% to 3.5%. In the same period, ANDV stock has risen 43%. The fall in the bearish sentiment for ANDV could be the result of the merger news coupled with the company’s better-than-expected first-quarter earnings. Furthermore, short interest in PSX has fallen 0.04% to 1.2%. The fall could be the result of the improving refining environment and the robust first-quarter earnings we discussed in Part One of this series.

In the next article, we’ll see what the latest 13F filings reveal about refining stocks.


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