Here's how I'm playing it as oil stays above $70.
The technical patterns of companies in the sector indicate they should underperform the broader market in the near term.
Oil prices tend to struggle to hold gains beyond mid-July.
A change in market behavior is in action as oil appears to top out and Treasuries, gold, and the U.S. dollar have all managed to grind higher together.
The choice is clear among large-cap producers that have been outperforming.
There is no shortage of oil, it's a timing game being held back for as long as possible to get the best price possible.
Plus, quick looks at Tesla's car deliveries, Amazon's CEO change and Didi Global's post-IPO downdraft.
But the world - or the Western world, anyway - is hell-bent on decarbonization of its transportation system and energy production.
Just because the volume is lighter, it doesn't make the gains any less real.
And that leads me to the natural resources space.