Petrobras' recent rally a creation of short sellers, Citi says

• U.S.-traded shares of Petrobras (PBR +1.1%) have rallied 40% in the past four weeks but the trend likely is fueled by short sellers covering their trades, according to Citi head of U.S. credit strategy Stephen Antczak and global head of commodities Ed Morse.
• "The flows into many investment grade energy names have been balanced, but not for all... [Petrobras] has challenges but was a crowded short. Short covering may have contributed to ~10 point rally since mid-March," the analysts write.