Natural gas rose in New York as a rally in commodity and stock markets eased concern that the recession would further trim demand for the industrial fuel. Gas followed advances in commodities including crude oil and copper after China reported an expansion in manufacturing for the first time in six months. Price gains were limited by concern a U.S. government supply report today would show that fuel use by factories and power plants is still weak. “Natural gas is not a willing passenger because of the storage report and recent trading,” said Michael Rose, a director of trading at Angus Jackson Inc. in Fort Lauderdale, Florida. “There have been several false starts in gas, first to the downside and then to the upside, and this has made traders say, ‘Show me’, before buying a move.” Natural gas for May delivery rose 8.2 cents, or 2.2 percent, to $3.777 per million British thermal units at 9:13 a.m. on the New York Mercantile Exchange. Gas has declined 33 percent this year and is down 72 percent from a 2008 high of $13.694 per million Btu reached on July 2. Inventories probably rose 2 billion cubic feet last week, the median of 20 analyst estimates compiled by Bloomberg. The average change for the end of March is a decline of 23 billion, Energy Department data show. Gas demand has dropped on reduced industrial consumption and as the heating season dissipates. The storage report is scheduled for release at 10:30 a.m. Crude oil for May delivery rose $3.38, or 7 percent, to $51.77 a barrel in New York. Equity markets in Asia and Europe rose, with gains of more than 3 percent on some indexes, amid speculation that stimulus efforts by the U.S. and China are starting to stabilize world economies.

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