Uncertainty

Erosion in natural gas and oil prices and continued uncertainty in the markets led onshore producer Penn Virginia Corp. on Friday to announce plans to reduce 2009 capital spending. It also lowered 2009 production guidance.

The deteriorating U.S. economy and uncertainty of what lies ahead have prompted fears of a huge reduction in natural gas demand. However, energy analysts are making the case for both bears and bulls in 2009.

The deteriorating U.S. economy and uncertainty of what lies ahead have prompted fears of a huge reduction in natural gas demand. However, energy analysts are making the case for both the bears and the bulls in 2009.

Continued equity market uncertainty, a weather outlook that is neutral at best and comfortable natural gas storage levels teamed up on Monday to help the November natural gas futures contract to plunge below $6 for the first time since Sept. 24, 2007. The prompt-month contract on Monday traded mostly between $6.050 and $6.200 in the regular session before closing at $6.121, down 11.8 cents from Friday’s finish.

Uncertainty over whether the U.S. government’s $700 billion economic bailout would make it through Congress was funneled to energy markets on Friday, which pushed lower as the financial landscape remained bleak. November crude dropped $1.13 to close at $106.89/bbl, while October natural gas expired at $7.472, down 25.2 cents from Thursday’s close and 5.9 cents below the previous week’s finish.

Pressured by the uncertainty of whether Congress would pass the $700 billion loan package for Wall Street, the U.S. energy sector took a dive on Friday as commodity prices spiraled lower. Some energy companies may have trouble securing loans in the short term, but overall, the sector should survive, energy analysts said.

Pressured by the uncertainty of whether Congress would pass the $700 billion loan package for Wall Street, the U.S. energy sector took a dive on Friday as commodity prices spiraled lower. Some energy companies may have trouble securing loans in the short term, but overall, the sector should survive, energy analysts said.

Volatile fuel prices and economic uncertainty weren’t enough to keep Duke Energy’s core operations from performing well, the company said in reporting 2Q2008 adjusted diluted earnings of 27 cents/share, up from 24 cents in 2Q2007.

Sparked by roaring crude prices, shaky fundamentals and summer heat and storm uncertainty, August natural gas futures jumped 15.5 cents on Monday to close at $13.353/MMBtu, a new high close for the up move.