The low oil environment may persist as the Organization of Petroleum Exporting Countries projects demand for its crude to remain lower in 2020 than in 2016 as rivals remain resilient despite the depressed prices.

“XLE’s Schaeffer’s put/call open interest ratio (SOIR) of 0.70 sits in the lowest percentile of its annual range, indicating short-term speculators are more call-heavy now than at any other point in the past year. Meanwhile, the ETF’s 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.61 sits lower than 98% of all similar readings taken in the last 12 months. In other words, puts have rarely been bought to open over calls at a slower pace over the previous 52 weeks,” according to Schaeffer’s.

Energy Select Sector SPDR