Oil is attempting to "jump the shark" of the near term demand weakness linked to mobility restrictions, lagging but still above the "consolidation".
Oil interest moving higher, but given the context of the vaccine etc news this remains "muted".
In early Nov we outlined our XLE chase dogs logic;
"XLE is more than only oil, but the gap vs oil is rather wide here…"
Energy has been the oil bull trade over past weeks, but feels late chasing it for the "structural" trade here.
Chasing oil here feels so so. Oil is not a blind bet higher, in fact a disappointment might be the next best trade.