I’m looking for a strange film that was probably from the late 1970s or 1980s. It’s plot revolves around there being some kind of mass illness that effects the entire population and makes it impossible for them to touch or interact sexually. There are a small number of people who are not afflicted by this illness and many of those people perform/mime sexual scenarios at an adult clubs. In the film the sexual performances are all done in strange and sometimes humorous set ups with an absurd and stylized quality. The only scene I can clearly recall is one in which up a man dressed as a giant pencil is performing with a woman who is costumed as a pencil sharpened. In my memory the costumes reveal only the actors arms and legs and while I can’t remember more specifics, I’m pretty sure this was one of several similar scenes. The lighting in the club scenes is very colorful and dreamlike which adds to the strange tone of the film.

I believe the main character is a young woman and I think she grapples with/is uncomfortable with her role at the adult club. I think at some point she forms a romantic relationship with another character and their relationship has a more real quality which contrasts with the absurd nature of the performance scenes.

I think the movie takes place in Canada, but I am not sure. I also think the movie ends tragically, maybe with some kind of destructive explosion of the club or city where the characters live, or with the worsening of the global illness.

I have been searching for this film for ages! I hope someone can help find it. Thank you!