Oil major Chevron (CVX) was the most shorted U.S. stock in April as Wall Street traders bet on a continued decline in energy prices.
Data from market research firm Hazeltree shows that Chevron replaced electric vehicle maker Tesla (TSLA) as the most shorted large cap U.S. stock in April. A short position is a bet that a stock price will decline.
Tesla had long been the most heavily shorted stock on Wall Street owing to its rich valuation.
During April, Chevron's total stock used for short positions rose to 9% from 7% the previous month, pushing it past Tesla, according to Hazeltree.
The shorting of Chevron’s stock came as crude oil prices slumped throughout April.
West Texas Intermediate crude oil, the U.S. standard, has fallen below $80 U.S. a barrel and currently trades at $78.82 U.S. per barrel.
Chevron also reported first-quarter results that missed Wall Street forecasts as the company struggles with weak energy prices and compressed refining margins.
A glut of natural gas and a warmer-than-expected winter have also hurt Chevron’s earnings.
The stock of Chevron has gained 5% over the last 12 months and currently trades at $164.53 U.S. per share. However, the stock did decline as much as 4% in April before recovering.
