UK GAS-Prices fall due to oversupplied system

* System oversupplied by 10.2 mcm/day

* Gas for immediate delivery down 0.65 p at 43.25 p/therm

LONDON, July 29 (Reuters) - British wholesale gas prices declined on Wednesday morning due to an oversupplied system.

Gas for day-ahead delivery was down 0.45 pence at 43.25 pence per therm at 0718 GMT, while gas for immediate delivery fell by 0.65 pence to 43.25 p/therm.

The UK gas system is about 10 million cubic metres (mcm) oversupplied, with demand forecast at 179.7 mcm and flows at 189.9 mcm/day, National Grid (LSE: NG.L - news) data shows.

UK Continental Shelf flows are 5 mcm higher than on Tuesday due to small increases into several terminals, while exports to continental Europe are lower.

Further along the curve, gas for September delivery was 0.30 pence lower at 42.40 p/therm.

In the Dutch gas market, August gas at the TTF hub was 0.10 euros lower at 20.65 euros per megawatt hour.

Since June, European utilities have been taking advantage of lower oil-indexed prices for Russian gas, analysts at London-based consultancy Energy Aspects said in a note on Wednesday.

"With lower oil-indexed prices expected to persist for a while, we believe imports of Russian gas should remain strong and injection rates should continue to increase," they added.

Europe needs to inject around 4 bcm more gas into storage than last year, which will require higher Russian gas imports over the next two or three months.

August is also forecast to be hotter than normal in the region, which will increase demand for gas cooling systems. Europe will also have to supply more gas to Ukraine to help fill its storage facilities over the summer.

In the European Union's carbon market, the benchmark price edged down by 0.01 euro to 8.02 euros per tonne. (Reporting by Nina Chestney; editing by Jason Neely)