* Front month breaks to lowest mark since Jan. 2002 * Mild weather on tap for much of the nation * U.S. crude futures edge higher in early trade * Coming Up: EIA oil data Wednesday, EIA gas data Thursday By Eileen Houlihan NEW YORK, April 11 (Reuters) - U.S. natural gas futures slid to their lowest mark in over 10 years by early Wednesday, pressured amid mild spring weather and ongoing concerns over record-high inventories and production. Front-month May natural gas futures on the New York Mercantile Exchange were at $2.03 per million British thermal units in early activity, down 0.1 cent, after sliding in electronic trade to $2.02, the lowest price for a front month since January 2002. The front month lost 19 percent in March, its biggest monthly drop since August 2010, and is down nearly 5 percent so far in April. Most traders expect little upside near-term, with no extreme cold or hot weather on the horizon to boost demand. RECORD INVENTORIES U.S. Energy Information Administration data last week showed total gas inventories rose to 2.479 trillion cubic feet, driving stocks further into record territory for this time of year. . (Storage graphic: link.reuters.com/mup44s) Early injection estimates for this week's EIA report range from 13 billion cubic feet to 41 bcf versus last year's adjusted build of 7 bcf and the five-year average increase for that week of 22 bcf. Utilities typically build inventories from April through October to help meet peak winter heating needs, but builds this year started two weeks earlier than usual. PRODUCTION ALSO STILL AT RECORD HIGHS The EIA's short-term energy outlook on Tuesday offered little hope for bulls, with the agency sharply raising its estimate for marketed gas production this year for a third straight month. EIA said it expects 2012 gas output to climb by 3 bcf per day, or 4.5 percent, to a record 69.22 bcfd, up from its March outlook that had output this year at 67.91 bcf daily. EIA also forecast a significant 2.8 bcf per day, or 4.3 percent, gain in consumption this year, primarily due to more utility switching from pricier coal to cheaper gas, but it was not expected to be enough to tighten an oversupplied gas market. The agency said it expected production growth to slow this year as low prices hit plans for new drilling, but it noted the sharp decline in the Baker Hughes gas rig count - down about 31 percent since peaking at 936 in October - has not yet reduced output partly due to increased drilling efficiency. The gas-directed rig count has fallen in 12 of the last 13 weeks, sinking last week to its lowest in nearly 10 years, but rising output from shale has kept production on an upward track. (Rig graphic: r.reuters.com/dyb62s) Some analysts say the gas-directed rig count may have to drop below 600 to reduce flowing supplies, but most do not expect any major slowdown in output until later this year. EIA did offer some chance that the market might be better balanced next year, with production forecast to come in nearly flat after seven straight yearly gains, while consumption is expected to grow by about 1.4 percent. MORE FUNDAMENTALS The National Weather Service's six- to 10-day outlook issued on Tuesday again called for above-normal readings for about the eastern third and western third of the nation and some below-normal readings across the mid-Continent. Nuclear plant outages were running at about 25,600 megawatts, or 26 percent, on Wednesday, near the same rate as a year ago and up from the five-year outage rate of about 23,800 MW. Traders said the outages should add more than 1 bcf to daily gas demand. (Reporting by Eileen Houlihan;editing by Sofina Mirza-Reid)

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