Buy Encana (ECA) Says Nenner

In an interview on Breakout, Charles Nenner gave his input on the price movements of oil and natural gas, where he sees the recent roles being reversed as oil continues to drop in price while natural gas has jumped from $1.80 about a month ago to $2.70 now. Nenner was very close to calling that exact, where he saw natural gas dropping to $1.70 before it rebounded.

From the end of April, oil has plummeted over 20 percent, while natural gas has climbed over 30 percent during the same period.

Going forward, Nenner, who tracks momentum and cycles in the two industries, said he doesn't see crude stopping it decline until November, where sees it going to as low as $68 a barrel. It makes one wonder if the Obama administration isn't manipulating the markets, as it is voting time right when oil is supposed to hit that level.

It also makes one wonder why natural gas is soaring, as that will ultimately be a positive for the anemic and sometimes unethical, so-called green energy sector, as it'll make it more competitive with natural gas, which has drawn much of the shine away from those boondoggles surrounding the very expensive alternative energy sources.

For natural gas, he sees it staying weak into the latter part of July before continuing to climb in price. In other words, traders and investors still have an opportunity to get in on natural gas before it continues to climb.

If you're not buying natural gas futures, Nenner recommends Encana Corp. (NYSE: ECA) as his top stock pick in the sector. He recommends waiting until July to get into it.

Nenner doesn't see oil picking back up until November.

Encana closed at $19.40, dropping $0.82, or 4.13 percent.

Encana (NYSE:ECA), Petrohawk (NYSE:HK), Valero Energy (NYSE:VLO) Soar on Rising Oil Prices

Encana (NYSE:ECA), Petrohawk (NYSE:HK), Valero Energy (NYSE:VLO) all moved up Thursday on the inflationary measures announced by the Federal Reserve through QE2, which pushed the broader commodity market up, along with commodity companies within each sector, including the oil and gas producers.

Commodity prices increased in general, including silver, which rose to over $26 an ounce. Gold prices surged to all-time record highs as well, moving toward the $1,400 an ounce mark. Aluminum soared to its highest levels since April.

Light, sweet crude for December delivery settled the trading session increasing $1.80 a barrel on the New York Mercantile Exchange at $86.49.

Encana Corp. closed at $29.31 Thursday, rising $0.97, or 3.42 percent. Petrohawk surged to close at $16.84, gaining $0.35, or 2.12 percent. Valero Energy was up to $18.93 at the end of the trading day, rising by $0.79, or 4.36 percent.

Catalysts for EOG Resources (NYSE:EOG), Anadarko (NYSE:APC), Apache (NYSE:APA) and EnCana (NYSE:ECA)

Potential near-term catalysts in the large cap oil & gas sector concerning results from Anadarko Petroleum's (NYSE:APC), Newfield Exploration (NYSE:NFX), Occidental Petroleum (NYSE:OXY), EnCana (NYSE:ECA), Newfield Exploration (NYSE:NFX), Range Resources (NYSE:RRC), Apache (NYSE:APA) and EOG Resources (NYSE:EOG) have been released by Barclays (NYSE:BCS).

Barclays said, "The Barclays Capital E&P Potential Catalyst Watch highlights potential market-moving events for companies we cover and addresses laterals across the sector. The E&P Potential Catalyst Watch is available on Barclays Capital Live under Tom Driscoll's bookshelf."

Notable potential catalysts: (1) Results from Anadarko Petroleum's exploration wells in Brazil and Mozambique, (2) Results form Newfield Exploration appraisal wells in the Maverick Basin (Eagleford shale) along with 3Q results, (3) 3Q Earnings reports next week: Occidental Petroleum, EnCana, Newfield Exploration, Range Resources ...We recommend oil-oriented Apache and MEG, as well as EOG Resources (our top pick) with its focus on liquids assets and attractive valuation."

More Oil Found at Campos Basin Off Brazil's Coast

The potentially huge depository of oil at the Campos Basin off of Brazil's Coast has yielded more oil, as partners in the venture, EnCana Corp., SK Energy Co., Anadarko Petroleum Corp. and Devon Energy Corp. discovered more at the huge site.

The new oil was found at a well called the 1APL1ESS in the C-M-101 block in water 1,418 meters (4,652 feet) deep.

With oil prices down, it's not known if the available oil can be produced at a profit at this time.