The oil industry narrowly avoided an election disaster. Now it's showing signs of life

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Oil prices are showing signs of life, rebounding from their unprecedented dip below zero this spring

. Coronavirus vaccine breakthroughs are sparking hope for a return in demand for jet fuel and gasoline. And a blue wave did not materialize during the November election, easing fears of a fossil fuel crackdown from Washington.That scenario is persuading investors to pile into beaten-down oil stocks. During Wall Street's blockbuster month of November, six of the top seven S&P 500 stocks were in the oil industry. Occidental Petroleum spiked by a stunning 73%.

A blue wave -- on top of a pandemic -- would have been disastrous for the oil industry because Democrats vowed to ramp up regulation to fight the climate crisis. "That's not dodging a bullet," McNally said."It's dodging a cannonball right at their head." The climate crisis is looming large on Wall StreetIf Democrats had taken decisive control of the US Senate, they would have been primed to pass sweeping climate legislation.

 

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