What happened to the 88 Energy share price?
At the time of writing, shares of 88 Energy [ASX:88E] were down 10.53%, to 6.8 cents.
Why did 88 Energy shares do this?
88 Energy has had a spectacular run in recent weeks. Following its Icewine crude oil discovery, the share price jumped 550% in five days at the 13-year low in crude oil. It’s subsequently surged on consistently good news. Yesterday, 88 Energy confirmed Icewine was better than expected. Today, it appears shareholders are cashing in some profits.
What now for 88 Energy?
I recommended 88 Energy in my paid subscription, Resource Speculator, before it hit the mother lode. My readers walked away with gains totalling roughly 242%. Subsequently, the crude oil price rocketed about 50% — not surprisingly, the 88 Energy share price took off.
Looking ahead, I will recommend this stock to my readers at the right time. 88 Energy has an excellent future. There are a couple of near term share price catalysts that may add value like, for example, the upcoming independent resource report.
But 88 Energy isn’t drilling its second well for at least another year. And, given the poor demand and supply environment, which I’ve frequently discussed in Money Morning, crude should hit a new low before this happens. In my view, 88 Energy’s share price may fall to lower lows later in the year.
Resources Analyst, Money Morning & Resource Speculator