SHEL, CVX, BP: Oil Stocks Hit as Investors Flow Out Following Middle East Cease-Fire

Oil stocks looked less slick today as new data revealed that institutional investors were selling out of the sector.

Quick Sell-Off

Shell (SHEL) was down 0.4%, Chevron (CVX) was off 0.2%, and BP (BP) looked 1% weaker as a new report from Goldman Sachs showed that hedge funds had sold energy stocks last week at the fastest pace since September 2024. It was also the second-quickest sell-off in the last decade.

The retreat followed a slump in oil prices as tensions in the Middle East following the recent conflict involving Israel, the U.S. and Iran over the latter’s nuclear ambitions cooled down.

Brent crude prices tumbled over $10 last week following a cease-fire between Israel and Iran. They also dropped following reports of increased supply from oil-producing group OPEC+ and now remain well below the recent peak of around $81.

This morning, Brent crude sat at around $66.

Tech Back in Favor

Only a week or so ago, during the height of the conflict, analysts were warning that the oil price could hit as high as $100 if the Iranians took the alternative nuclear option of closing the vital Strait of Hormuz.

That, of course, didn’t happen, but anyone betting on the cease-fire between the three countries remaining in place for a lengthy period of time would be a brave person indeed.

Hedge funds, however, were eager to use their cash elsewhere, with Goldman Sachs revealing the largest stock buying in five weeks, as funds scooped up company shares in every global region.

The stock sectors most favored were financial, technology, and industrial companies, again indicators that fears of a global economic downturn have eased.

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