Updates for Market Close

Dec 31 (Reuters) - U.S. Natural Gas Futures Retreated on Tuesday as Traders Booked Profits, Though the Market Recorded Its Biggest Annual Jump Since 2021 Fueled by an Increase in Gas Flowing to Liquefied Natural Gas (LNG) Export Plants on Rising Overseas Demand.

Front-Month Gas Futures Ngc1 for February Delivery on the New York Mercantile Exchange Settled 30.1 Cents Lower, or Down 7.7%, at $3.633 per Million British Thermal Units as of 02:42 P.m. EST, as Traders Took Profits After Prices Surged on Monday to Their Highest Since January 2023.

"Gas Prices Yesterday Jumped up on the Revised and Colder January Weather Forecast During the Weekend, and the Decline Now Is, I Believe, a Correction From the Sharp Increases, the Magnitude of Which May Not Be Fully Justified by the Prolific Gas Production in the Last a Few Months," Said Zhen Zhu, Managing Consultant at C.h. Guernsey and Company in Oklahoma City.

Financial Firm Lseg Estimated 492 Heating Degree Days Over the Next Two Weeks, Compared With 499 Estimated on Monday. It Also Forecast Average Gas Demand in the Lower 48, Including Exports, Jumping From 118.9 Bcfd This Week to 144.4 Bcfd Next Week.

Lseg Said Average Gas Output in the Lower 48 U.S. States Rose to 103.3 Bcfd so Far in December, From 101.5 Bcfd in November. That Compares With a Record 105.3 Bcfd in December 2023.

"Gas Prices Still Have Room to Head Higher in the Short to Medium Terms Due to Potentially Substantial Increase in Demand in January and February and the Possible Wellhead Freeze Offs. No Matter What Happens, Winter Weather Uncertainty Will Continue to Bring Volatilities to Gas Prices in the Next Couple of Months Especially in January," Zhu Added.

Natural Gas Prices Surged Over 44% in 2024, the Biggest Annual Gain Since 2021. the Contract Also Added More Than 8% so Far This Month, Its Second Consecutive Monthly Gain.

"the Forward Curve Shows Prices Higher in 2025 Than It Was in 2024. a Lot of That Is Because the Storage Overhang Has Been Able to Work Down the Expectations. Producers Don't Overdo It, and We Should See the Strong Demand From Power Burns and Exports,” Said Robert Didona, President of Energy Ventures Analysis.

"Overall Prices in 2025 Should Average Higher Than They Should Average in 2024 Because of the Tighter Supply-Demand Balance Picture."

The Amount of Gas Flowing to the Eight Big U.S. LNG Export Plants Rose to an Average of 15.16 Billion Cubic Feet per Day (Bcfd) so Far in December From 13.6 Bcfd in November, According to Lseg Data.

Venture Global's LNG Tanker, Venture Bayou Departed From the Plaquemines Export Plant in Louisiana for Germany Last Week, Carrying the First LNG CARGO Produced at the Facility.

Following This, Cheniere Energy Lng.n on Monday Said It Produced the First LNG From a New Texas Facility, Becoming the Second New U.S. Export Plant This Year to Increase Supplies of the Superchilled Gas.

The U.S. Is the World's Largest Exporter of LNG and Production of Superchilled Gas From Cheniere's Stage 3 and Venture Global's Plaquemines Plants Are Expected to Keep the U.S. as the Top Exporter of LNG in 2025.

Dutch and British Wholesale Gas Prices Inched up on Tuesday Morning on Expectations for Colder Weather Later This Week and as Russian Gas Supply to Europe via Ukraine Was Expected to Stop. Ng/EU

(Reporting by Anushree Mukherjee, Anmol Choubey and Swati Verma in Bengaluru; Editing by Susan Fenton and Nick Zieminski)

((Anushree.ashishmukherjee@Thomsonreuters.com;))

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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