UPDATE 1-US natgas prices slide over 2% on record output, mild weather

Front-month gas futures for January delivery on the New York Mercantile Exchange settled down 6.1 cents, or 2.3%, at $2.55 per million British thermal units. "The combination of high natural gas production, low weather-related demand because of the holiday and then the moderate temperature forecast is just all turning into a bearish price environment for the natgas market," said Robert DiDona of Energy Ventures Analysis. Financial firm LSEG forecast U.S. gas demand in the Lower 48, including exports, at 120.8 bcfd this week, down from last week's 126.6 bcfd, weighed down by limited heating demand as businesses and government offices were shut for the Christmas week.