The energy sector is caught in a fascinating game of tug of war as short interest in energy stocks surges. Such rising short interest can sometimes trigger a “short squeeze,” forcing short sellers to shares to cover their positions, ultimately driving prices higher. December saw bearish bets on energy stocks climb to 2.35% from 2.22% in November, fueled by a bleak global demand outlook and a potential supply glut.
Analysts from major Wall Street banks, including Goldman Sachs and JPMorgan, have trimmed their oil price forecasts for the year, further dampening sentiment.
