* Front month hits fresh 10-year spot low * Milder spring weather on tap for much of the nation * U.S. crude futures slip in early trade * Coming Up: EIA oil data Wednesday, EIA gas data Thursday (Adds cash prices, updates throughout) By Eileen Houlihan NEW YORK, April 18 (Reuters) - U.S. natural gas futures edged slightly higher in early trade Wednesday, after sliding overnight to their lowest mark in more than 10 years amid mild spring weather and a growing supply glut. Record-high supplies have pushed prices below the key $2 per million British thermal unit level and are expected to continue to weigh on sentiment, but some traders said the market was oversold and due for bounce after losing 8 percent this month. Front-month May natural gas futures on the New York Mercantile Exchange were at $1.962 per mmBtu, up 1.1 cents, after sliding to $1.94, the lowest price for a front month since January 2002. In the cash market, gas bound for the NYMEX delivery point Henry Hub NG-W-HH in Louisiana was heard early at $1.86 on volume near 591 million cubic feet, down 3 cents from Tuesday's average of $1.89 and at its lowest price since September 2009. Early Hub cash deals were also done at about an 8-cent discount to the front month, little changed from deals done late Tuesday at a 10-cent discount. Gas on the Transco pipeline at the New York City gate NG-NYCZ6 was heard early near $2.02 on volume near 212 mmcf, down 5 cents from Tuesday's $2.07 average. RECORD INVENTORIES U.S. Energy Information Administration data last week showed total gas inventories rose to 2.487 trillion cubic feet, remaining at record highs for this time of year and standing nearly 56 percent above last year and about 59 percent above the five-year average level. (Storage graphic: link.reuters.com/mup44s) Injection estimates for this week's EIA report range from 12 bcf to 41 bcf, with most in the mid-20s bcf. Stocks gained an adjusted 42 bcf during the same week last year and on average over the past fives years have risen 26 bcf that week. If weekly stock builds through October match the five-year average pace, inventories would top out at 4.595 tcf, or about 12 percent above peak estimated capacity of about 4.1 tcf. That could sink prices later in the injection season if storage caverns fill up and force more gas into a well-supplied market. PRODUCTION ALSO NEAR RECORD HIGHS The EIA's short-term energy outlook last week also 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 utilities switching from pricier coal to cheaper gas, but it was not expected to be enough to tighten an over supplied gas market. Production growth is expected to slow this year as low prices hit plans for new drilling, but the sharp decline in the Baker Hughes gas rig count -- down a third 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 13 of the last 14 weeks, sinking on Friday to its lowest level in 10 years, but rising output from shale has kept production on an upward track. (Rig graphic: r.reuters.com/dyb62s) MORE FUNDAMENTALS The National Weather Service's six- to 10-day outlook issued on Tuesday again called for above-normal readings for much of the mid-Continent and below-normal readings mostly in the eastern third of the nation. Spring nuclear power plant outages were running at about 25,700 megawatts, or 25 percent, on Wednesday, down from about 28,900 MW out a year ago and a five-year outage rate of about 24,100 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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