Short interest in Shell
Short interest in Royal Dutch Shell (RDS.A) has fallen from 0.13% on January 2, 2019, to the current level of 0.10%. Usually, a fall in short interest could indicate a decrease in bearish sentiment for a stock. Shell’s stock price has risen 9.9%.
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The fall in short interest in Shell could be due to the rise in oil prices. Since January 2, WTI crude oil prices have risen 41.2%. Oil prices are quite relevant for integrated energy companies since they’re one of the main determinants of a company’s upstream earnings. The rise in oil prices could mean better quarter-over-quarter upstream earnings for Shell in the first quarter.
Moreover, the fact that the company’s fourth-quarter earnings beat Wall Street analysts’ earnings expectation could have led to a fall in bearish sentiment.
Peers’ short interest
Short interest in Shell’s peers Equinor (EQNR) and Petrobras (PBR) has fallen by 0.03 percentage points and 0.01 percentage points, respectively, over January 2. Currently, Equinor and Petrobras’s short interest stand at 0.14% and 0.81%, respectively. Short interest in Suncor Energy (SU) has fallen by 0.26 percentage points since January 2 to the current level of 0.45%.
Since January 2, stock prices of Equinor, Petrobras, and Suncor have risen 10.5%, 12.0%, and 20.1%, respectively. This rise shows that these stock prices and their short interest have moved inversely over this period.