UK GAS-Forward contracts gain as Russian gas talks continue

* British system was oversupplied by about 16 mcm

* Russia and Ukraine yet to reach agreement on prices

* Temperatures to rise from Wednesday -meteorologists

June 10 (Reuters) - British forward gas contracts rose on Tuesday despite healthy supply, with the market watching closely for news from talks between Russia and Ukraine on gas prices.

Russia, Ukraine and the European Union agreed to continue talks about Russian gas supplies to Ukraine after overnight negotiations ended without any firm agreement on price, averting an imminent supply cut.

The British gas system was oversupplied by about 16 million cubic metres (mcm) on Tuesday morning (Frankfurt: TDM.F - news) with demand forecast at 202 mcm.

The day-ahead contract was steady at 37.55 pence/therm by 0800 GMT after hitting a record low of 36.25 pence/therm during intraday trade on Monday.

Meteorologists said temperatures are expected to fall slightly on Wednesday but remain above normal and rise again later in the week.

Flows of gas from Norway were steady from the previous day's average.

"We expect flows to remain stable until June 15, when the maintenance at a Troll compressor is scheduled to start," said Cecile Langevin, a gas market analyst at Point Carbon.

Analysts expect the oversupply of gas to increase when the InterconnectorUK (IUK) pipeline, which exports gas to continental Europe, goes offline for maintenance on Wednesday.

The maintenance is expected to last until June 26.

"We expect ... high storage net injections during that period," Langevin said.

Further along the curve, gas for July delivery rose by 0.45 pence to 40.85 pence per therm and winter 2014 gas was up 0.25 pence at 59.35 pence per therm.

"There is likely to be some risk premium added in as the dispute between Russia and Ukraine has yet to be resolved ... and a firming in front-month Brent crude helps to support seasonal contracts," one UK gas trader said.

Brent oil futures rose above $110 a barrel on Tuesday on hopes of demand growth from the United States and China, a day after posting their biggest daily percentage gain in nearly two months.

(Reporting by Nerijus Adomaitis; Editing by David Goodman)