By Asjylyn Loder Sept. 23 (Bloomberg) -- Natural gas rose in New York on signs that the recession may be easing, boosting demand for the industrial and power-plant fuel. Gas has rebounded 54 percent from a Sept. 4 low of $2.409 per million British thermal units, the lowest intraday price since March 2002, as economic data showed that the economy is strengthening. Weak fuel demand during the worst slowdown since the Great Depression has sent stockpiles 16 percent above the five-year average. “The momentum favors the upside in this market,” said John Kilduff, senior vice president of energy at MF Global in New York. “As you see economic activity picking up, you see growing interest in industrial demand returning.” Natural gas for October delivery rose 10.8 cents, or 3 percent, to $3.717 per million British thermal units at 9:33 a.m. on the New York Mercantile Exchange. Prices are down 34 percent this year. Gas breached technical resistance levels of $3.50 and $3.70, and would meet with resistance again at $3.90, Kilduff said. “The market is going to need some help from somewhere” to reach $3.90, Kilduff said. “It’s not going to get there on its own on fundamentals.” To contact the reporters on this story: Asjylyn Loder in New York aloder@bloomberg.net.

Source