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Brent Tops $60, DXI Energy Ready To Roll

|Includes: DXI Energy Inc. (DXIEF)
Summary

producing junior oil company

getting ready to drill in Canada's Peace River country

already has hits in target area

Just a quick hit on a company which should do well if oil prices rise.

The energy sector is warming up again. Even before the recent events in Saudi, oil prices have been rising and the Brent oil price just broke $60 a barrel for the first time since 2015. Positioning to take advantage of the firming oil price is challenging. Especially with the uncertainty which surrounds both heavy oil plays and fracking.

DXI Energy Inc. (T.DXI) has been working in British Columbia’s Peace River region for over a decade. It has producing wells and, perhaps more interestingly, its wells are conventional oil/gas wells. No fracking required.

You can read an excellent assessment of DXI over at Stockhouse.com.

However, if you simply want an option on the price of oil continuing to rise, DXI makes a lot of sense as a pure stock play. Three years ago it traded at $1.50, right now it is trading at $0.09. Three years ago, Brent oil was trading above $80 but was on its way down, right now it is trading over $60 and appears to be on its way up.

As oil prices rise DXI looks significantly oversold.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.