By Reg Curren Nov. 3 (Bloomberg) -- Natural gas in New York fell amid speculation the U.S. may be sliding into the longest recession in 27 years, cutting demand for energy. About 42 percent of U.S. gas is consumed by companies in the industrial or commercial parts of the economy, and a recession might reduce their need for the fuel. A record plunge in commodities may signal the U.S. is heading for the longest recession since 1981. ``Obviously, there is continued concern about the overall economy,'' said Brad Florer, a trader at Kottke Associates Inc. in Louisville, Kentucky. Natural gas for December delivery fell 18.6 cents, or 2.7 percent, to $6.597 per million British thermal units at 9:31 a.m. on the New York Mercantile Exchange. Gas has fallen 51 percent since reaching the high for the year of $13.694 per million Btu on July 2. Technical indicators suggest that until gas is able to close above $7 per million Btu it will continue to be sold off near the top of what has been a ``down channel'' for the past month, Florer said. Natural gas last closed above $7 per million Btu on Oct. 3. It has climbed above or near that figure seven times in the past month only to then be sold off, Florer said. ``On Oct. 31 we had that rally to the top of the down channel and until we take that out decisively above $7, you're going to see selling come in,'' said Florer. The Energy Department said Oct. 30 that U.S. gas inventories total 3.393 trillion cubic feet, above the five-year average at the start of the cold-weather season. Stockpiles trail last year's record amount of 3.545 trillion cubic feet that was built up by early November. Inventories typically rise until early November, when demand increases with colder weather. To contact the reporters on this story: Reg Curren in Calgary at rcurren@bloomberg.net.

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