By Scott DiSavino

April 4 (Reuters) - U.S. natural gas futures dropped about 4% on Friday on a decline in daily liquefied natural gas $(LNG)$ exports and forecasts for mild weather and lower demand over the next two weeks than previously expected.

That price decline occurred despite a decline in output so far this month.

Gas futures NGc1 for May delivery on the New York Mercantile Exchange fell 17.4 cents, or 4.2%, to $3.964 per million British thermal units at 9:03 a.m. EDT (1303 GMT). On Thursday, the contract closed at its highest price since March 19.

For the week, the contract was down about 2.6% after gaining about 2% last week.

Energy traders said mild weather and low demand last month likely allowed utilities to add gas to storage in March for the first time since 2012 and only the second time in history.

Gas stockpiles, however, were still about 3% below normal levels for this time of year after cold weather in January and February forced energy firms to pull large amounts of gas out of storage, including record amounts in January. EIA/GAS NGAS/POLL

SUPPLY AND DEMAND

Financial firm LSEG said average gas output in the Lower 48 U.S. states has fallen to 105.7 billion cubic feet per day so far in April, down from a monthly record 106.2 bcfd in March.

Looking forward, analysts noted the 11% drop in U.S. crude CLc1 futures so far this week could result in less oil drilling in shale basins like the Permian in Texas and New Mexico and Bakken in North Dakota, which could result in lower amounts of gas associated with that oil production.

Oil prices dropped this week on worries U.S. President Donald Trump's tariffs could result in lower global economic growth and oil demand, while the Organization of the Petroleum Exporting Countries (OPEC) and their allies, including Russia, a group known as OPEC+, announced plans to keep boosting oil supplies. O/R

Meteorologists projected temperatures in the Lower 48 states would remain mostly near normal through April 19.

LSEG forecast average gas demand in the Lower 48, including exports, will rise from 104.0 bcfd this week to 105.9 bcfd next week before dropping to 97.2 bcfd in two weeks. The forecast for next week was lower than LSEG's outlook on Thursday.

The average amount of gas flowing to the eight big operating U.S. LNG export plants has fallen to 15.6 bcfd so far in April, down from a monthly record 15.8 bcfd in March.

The U.S. became the world's biggest LNG supplier in 2023, surpassing Australia and Qatar, as surging global prices fed demand for more exports due in part to supply disruptions and sanctions linked to Russia's 2022 invasion of Ukraine.

Gas was trading around a six-month low of $12 per mmBtu at the Dutch Title Transfer Facility (TTF) TRNLTTFMc1 benchmark in Europe and held near a three-month low of around $13 at the Japan Korea Marker (JKM) JKMc1 benchmark in Asia. NG/EU

text_section_type="notes">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 terminalFor graphics on Baker Hughes rig counts, see: http://graphics.thomsonreuters.com/15/rigcount/index.htmlFor next-day SNL U.S. gas prices, see: 0#SNL-NGFor next-day SNL U.S. power prices, see: 0#SNL-PWRFor U.S. natgas price and storage polls, see: NGAS/POLLFor U.S. nuclear power outages, see: NUKE/For U.S. Northwest hydro power report, see: NWRFCFor U.S./Canada natural gas rig count vs Henry Hub futures price, see: http://tmsnrt.rs/2eT9k44For the U.S. natural gas speed guide, see: USGASFor the U.S. power speed guide, see: USPOWERTo 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#3CFTC023651NYMEX Henry Hub futures only 0#1CFTC023651ICE Henry Hub options and futures combined 0#3CFTC023391NYMEX Henry Hub swaps options and futures combined 0#3CFTC03565BNYMEX Henry Hub Penultimate gas swaps 0#3CFTC03565C

(Reporting by Scott DiSavino; Editing by Paul Simao)

((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters Messaging: scott.disavino.thomsonreuters.com@reuters.net/))