By Scott DiSavino

July 10 (Reuters) -U.S. natural gas futures eased about 1% on Wednesday on recent increases in output, a drop in the amount of gas flowing to liquefied natural gas (LNG) export plants after Freeport LNG in Texas shut for Hurricane Beryl and a tremendous surplus of gas in storage for this time of year.

Raised demand forecasts for the next two weeks gave prices some support, as a brutal heat wave was expected to persist through at least late July, stoking demand for air conditioning and forcing power generators to burn lots of gas.

Analysts said gas stockpiles were about 18% above normal levels. EIA/GAS NGAS/POLL

About 1.7 million homes and businesses in Texas remained without power on Wednesday in the wake of Hurricane Beryl.

Front-month gas futures NGc1 for August delivery on the New York Mercantile Exchange fell 2.5 cents, or 1.1%, to $2.319 per million British thermal units (mmBtu), in technically oversold territory for a second day.

SUPPLY AND DEMAND

Financial firm LSEG said gas output in the Lower 48 U.S. states rose to an average of 102.4 billion cubic feet per day (bcfd) so far in July, up from an average of 100.2 bcfd in June and a 17-month low of 99.5 bcfd in May. U.S. output hit a monthly record high of 105.5 bcfd in December 2023.

Output slowed as prices dropped, hitting a 3-1/2 year low in March. The recovery in April, May and June prompted some producers, including EQT EQT.N and Chesapeake Energy CHK.O, to start pulling more gas out of the ground. On a daily basis, output hit a 17-week high of 103.0 bcfd on Sunday.

EQT is the nation's biggest gas producer, and Chesapeake is on track to become the biggest after its planned merger with Southwestern Energy SWN.N.

Meteorologists projected weather across the Lower 48 states would remain hotter than normal through at least July 25.

With hotter weather expected next week, LSEG forecast average gas demand in the Lower 48, including exports, will rise from 106.1 bcfd this week to 107.0 bcfd next week. Those forecasts were higher than LSEG's outlook on Tuesday.

Gas flows to the seven big U.S. LNG export plants fell to 12.2 bcfd so far in July after Freeport LNG in Texas shut ahead of Hurricane Beryl on Sunday, down from 12.8 bcfd in June and a monthly record high of 14.7 bcfd in December 2023.

The U.S. became the world's biggest LNG supplier in 2023, ahead of recent leaders Australia and Qatar, as much higher global prices fed demand for more exports due in part to supply disruptions and sanctions linked to Russia's invasion of Ukraine.

With worries about Hurricane Beryl receding, gas prices fell to a seven-week low of around $10 per mmBtu at the Dutch Title Transfer Facility (TTF) benchmark in Europe TRNLTTFMc1 and a three-week low of $12 at the Japan Korea Marker (JKM) benchmark in Asia JKMc1. NG/EU

Reporting by Scott DiSavino; Editing by David Gregorio

For gas data on LSEG's Eikon type ENERGY in the search bar and then go to the GAS drop down and the NORTH AMERICA drop down.

For Interactive Map, type 'Interactive Map' in the box at upper left of the Eikon terminal

For graphics on Baker Hughes rig counts, see: http://graphics.thomsonreuters.com/15/rigcount/index.html

For next-day SNL U.S. gas prices, see: 0#SNL-NG

For next-day SNL U.S. power prices, see: 0#SNL-PWR

For U.S. natgas price and storage polls, see: NGAS/POLL

For U.S. nuclear power outages, see: NUKE/

For U.S. Northwest hydro power report, see: NWRFC

For U.S./Canada natural gas rig count vs Henry Hub futures price, see: http://tmsnrt.rs/2eT9k44

For the U.S. natural gas speed guide, see: USGAS

For the U.S. power speed guide, see: USPOWER

To determine CFTC managed money net position add (NYMEX Henry Hub options and futures combined 3023651MNET) plus (ICE Henry Hub options and futures combined 3023391MNET divided by four) plus (NYMEX Henry Hub swaps options and futures combined 303565BMNET divided by four) plus (NYMEX Henry Hub penultimate gas swaps 303565CMNET divided by four)

NYMEX Henry Hub options and futures combined 0#3CFTC023651

NYMEX Henry Hub futures only 0#1CFTC023651

ICE Henry Hub options and futures combined 0#3CFTC023391

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NYMEX Henry Hub Penultimate gas swaps 0#3CFTC03565C