Short sellers slash bets against energy stocks in July

Short sellers marginally decreased their bets against oil and gas stocks in July, with short interest in the energy sector reaching 2.18% compared to 2.64% in the month-ago period.

The short bets, where traders sell borrowed shares of companies intending to repurchase them later at a lower price, decreased to 438.83M in July from 530.68M in June.

Crude oil futures (CL1:COM [https://seekingalpha.com/symbol/CL1:COM#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]) rose 6% in July, compared to a 6.6% fall in the corresponding period in the previous year.

The S&P 500 Energy sector (NYSEARCA:XLE [https://seekingalpha.com/symbol/XLE#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]) rose 2.1% in July, compared to a 2.3% gain in the S&P benchmark index (SP500 [https://seekingalpha.com/symbol/SP500#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]).

MOST SHORTED S&P 500 ENERGY STOCKS AS OF JULY-END

* APA Corporation (APA [https://seekingalpha.com/symbol/APA]) 11.26% vs 11.01% in the prior month.
* Texas Pacific Land (TPL [https://seekingalpha.com/symbol/TPL]) 7.05% vs 6.84%.
* Diamondback Energy (FANG [https://seekingalpha.com/symbol/FANG]) 5.13% vs 4.12%
* Valero Energy (VLO [https://seekingalpha.com/symbol/VLO]) 4.10% vs 4.46%.
* Coterra Energy (CTRA [https://seekingalpha.com/symbol/CTRA]) 3.63% vs 3.83%.

LEAST SHORTED S&P 500 ENERGY STOCKS AS OF JULY-END

* Exxon Mobil (XOM [https://seekingalpha.com/symbol/XOM]) 0.86% vs 0.94% in the prior month.
* Chevron (CVX [https://seekingalpha.com/symbol/CVX]) 0.92% vs 3.48%.
* The Williams Companies (WMB [https://seekingalpha.com/symbol/WMB]) 1.18% vs 1.17%.
* ConocoPhillips (COP [https://seekingalpha.com/symbol/COP]) 1.39% vs 1.09%.
* ONEOK (OKE [https://seekingalpha.com/symbol/OKE]) 1.87% vs 1.76%.

Industry Analysis

_Average short interest as a percentage of floating shares_

Oil and Gas Exploration and Production was the most shorted industry within the sector, with 3.41% short interest as of July-end, up from 3.29% as of June-end.

Integrated Oil and Gas was the least shorted industry within the energy sector, with 1.23% short interest as of July-end, compared to 2.00% at the end of June.

MORE ON THE ENERGY SELECT SECTOR SPDR® FUND ETF

* XLE: Still Has Value, Could Be Volatile, Don't Expect Much Either Direction [https://seekingalpha.com/article/4805621-xle-still-has-value-could-be-volatile-dont-expect-much-either-direction]
* Real Energy Outlook: Market Searches For Solid Ground [https://seekingalpha.com/article/4801751-real-energy-outlook-market-searches-for-solid-ground]
* Energy Stocks: Winners And Losers At The Beginning Of H2 2025 [https://seekingalpha.com/article/4799925-energy-stocks-winners-and-losers-at-the-beginning-of-h2-2025]
* BofA sees rising oil surplus from OPEC+ output pushing Brent below $60 in H2 [https://seekingalpha.com/news/4485823-bofa-sees-rising-oil-surplus-from-opec-output-pushing-brent-below-60-in-h2]
* Illinois Tool Works, Fortive downgraded at Barclays; Allegion upgraded with industrial outlook [https://seekingalpha.com/news/4485492-illinois-tool-works-fortive-downgraded-at-barclays-allegion-upgraded-with-industrial-outlook]