Oil majors have tightened their belts, reducing costs by laying off thousands of workers and halted many new projects. Large integrated oil companies are expected to hold up better than drilling stocks as these giants have both upstream exploration and production, along with downstream refining operations.

“Following suit, short sellers in Conoco Philips (NYSE: COP) dropped their positions by 9.3 million, or 26%, to 26.1 million,” adds 24/7 Wall Street. “Short interest in Kinder Morgan Inc. (NYSE: KMI) fell 6.2% to just over 64 million shares, which is 3.4% of the company’s float. The stock is the 25th most-shorted stock on the New York Stock Exchange.”

Energy Select Sector SPDR