Despite a rally in oil prices triggered by the prospect of a widening supply deficit, hedge funds sold energy stocks last week for the first time in three weeks, according to a report by Reuters citing information from Goldman Sachs.

Goldman Sachs' prime brokerage unit says the move was mainly led by short sales in both North America and Europe, indicating that managers are anticipating a decline in the price of energy stocks.

According to data from Goldman Sachs, the overall hedge fund trading book was underweight energy stocks at levels approaching a May 2020 low. The data also reveals that hedge funds increased their short bets on US energy stocks, besides oil, gas, consumable fuels and energy equipment and services.