Twin Butte Energy Ltd TBTEF

RE:Crude Oil Vs TBE Stock

[1nt2Trade]

Exactly despite bshort's perpetual attempt at sticking the TBE sp decline on management it's really all about the price of crude.   If you bring up a chart YTD of TBE with the WTI crude benchmark the decling of both is now almost exactly equal with WTI @ - 41.8% and TBE @ -42.8%.  If you go a year back it's almost equal @ - 72%.  There were times this year when there was a good spread between these equities; ususally TBE traded at a lower decline then WTI suggsting the market was anticipating further gains in the price of crude.  Looking back I wish I recognoozed this spread and got out earlier especially when oil stopped increasing and was trading sideways for a couple months.    

I'm 100% convinced WTI will drop more in the short term probably close to $40/boe.  Historically crude prices are highest this time of year and lowest at the end of the year.  There was an unexpected build in inventories last week and an increase in the drill rigs.  Given demand slows this time of year for maintence there will be another build next week dropping the wti price.  Also there have been 3 straight weeks of rig increases following about a year of weekly consecutive declines.   I think the increase in rigs will continue as the producers gamble anticipating higher prices.  

Bottom line is TBE is going lower.  

Hopefully WTI will rebound by the 2016.  The weekly on BNN looked at this yesterday and Rafi from canoe financial is guessing crude will be in the $60-80 range.  

https://www.bnn.ca/Shows/weekly-with-andrew-mccreath.aspx

If true there will be massive upside potential in oil stocks.