Adds latest prices

By Scott DiSavino

Sept 30 (Reuters) -U.S. natural gas futures edged up about 1% to a 15-week high as reduced output so far this year has cut the amount of the fuel going into storage for the winter heating season.

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

That is because many producers reduced their drilling activities earlier 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.

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 for this time of year due to relatively low heating demand during mild winter of 2023-2024. EIA/GAS NGAS/POLL

Front-month gas futures NGc1 for November delivery on the New York Mercantile Exchange rose 2.1 cents, or 0.7%, to settle at $2.923 per million British thermal units (mmBtu), their highest close since June 13.

That kept thefront-month in technically overbought territory for a second day in a row for the first time since May.

For the month, the contract was up about 37%, the most in a month since July 2022.

For the quarter, the front-month was up about 12% after jumping 48% last quarter.

Futures rose despitea small increase in output over the weekend and forecasts for less demand over the next two weeks than previously expected.

That small output increase came as some drillers restarted their Gulf of Mexico production now that Hurricane Helene passedthrough the area.

The decline in demand, meanwhile, was due in part to a reduction in the amount of gas power generators will likely need to burnwith over 1.9million homes and businesses still without power in the U.S. Southeast and Midwest after Helene battered the region late last week.

The U.S. National Hurricane Center projected a tropical disturbance in the Caribbean Sea had a 40% chance of strengthening into a cyclone as it moves into the Gulf of Mexico over the next week.

SUPPLY AND DEMAND

LSEG said gas output in the Lower 48 U.S. states fell to an average of 102.1 bcfd so far in September, down from 103.2 bcfd in August. That compares with a record 105.5 bcfd in December 2023.

The average output for September, however, was higher than seen last week as some Gulf of Mexico production returned to service.

LSEG forecast average gas demand in the Lower 48 states, including exports, will rise from 95.9 bcfd this week to 96.6 bcfd next week. Those forecasts were lower than LSEG's outlook on Friday.

Gas flows to the seven big U.S. liquefied natural gas (LNG) export plants eased to an average of 12.7 bcfd so far 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 Andrea Ricci and Marguerita Choy

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

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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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