Adds latest prices throughout

By Scott DiSavino

Oct 1 (Reuters) -U.S. natural gas futures eased about 1% on Tuesday on forecasts for less demand than previously expected over the next two weeks after closing at a 15-week high in the prior session.

That demand decline was due in part to a reduction in the amount that gas power generators will need to burn with over 1.6 million homes and businesses still without power in the U.S. Southeast and Midwest after Hurricane Helene battered the region late last week.

The U.S. National Hurricane Center projected that there was a 40% chance that a tropical cyclone could form in the Gulf of Mexico over the next week.

Front-month gas futures NGc1 for November delivery on the New York Mercantile Exchange fell 2.7 cents, or 0.9%, to settle at $2.896 per million British thermal units (mmBtu). On Monday, the contract closed at its highest since June 13.

Despite Tuesday's small price decline, the front-month remained in technically overbought territory for a third day in a row for the first time since May.

That price decline came even as lower output so far this year has cut the amount of fuel going into storage for the 2024-2025 winter heating season.

Storage injections in July, August and likely in September were at record lows, according to federal energy data going back to 1997.

That is because many producers reduced their drilling activities this year after average spot monthly prices at the U.S. Henry Hub NG-W-HH-SNL benchmark in Louisiana fell to a 32-year low in March and have remained relatively low since.

Even though storage injections have been lower than usual in 19 of the past 20 weeks, the amount of gas in inventory was still about 6% above normal levels for this time of year due to low heating demand during the mild winter of 2023-2024. EIA/GAS NGAS/POLL

SUPPLY AND DEMAND

LSEG said gas output in the Lower 48 U.S. states fell to an average of 101.8 billion cubic feet per day in September, down from 103.0 bcfd in August. That compares with a record 105.5 bcfd in December 2023.

In other news, some analysts have talked about reports that about 0.3 bcfd of gas from the Permian was flowing along the 2.5-bcfd Matterhorn pipe in Texas into Williams Cos WMB.N Transco pipe.

With cooler autumn weather expected to boost heating use, LSEG forecast average gas demand in the Lower 48, including exports, will rise from 95.0 bcfd this week to 96.0 bcfd next week. Those forecasts were lower than LSEG's outlook on Monday.

Gas flows to the seven big U.S. liquefied natural gas (LNG) export plants eased to an average of 12.7 bcfd in September, down from 12.9 bcfd in August. That compares with a monthly record high of 14.7 bcfd in December 2023.

That reduction was due mostly to the planned Sept. 20 shutdown of Berkshire Hathaway Energy's 0.8-bcfd Cove Point LNG export plant in Maryland for around three weeks of annual maintenance.

Reporting by Scott DiSavino; editing by Jonathan Oatis and Sandra Maler

For gas data on the LSEG terminal 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 LSEG 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

NYMEX Henry Hub swaps options and futures combined 0#3CFTC03565B

NYMEX Henry Hub Penultimate gas swaps 0#3CFTC03565C