UK GAS-Prices decline despite Langeled flow drop

LONDON, July 26 (Reuters) - British wholesale gas prices fell on Friday morning on oversupply even though Norwegian flows through the Langeled pipeline have dropped to zero.

* Day-ahead gas was down by 0.10 pence at 27.75 p/therm at 0940 GMT.

* Within-day gas fell by 0.55 pence to 27.30 pence per therm.

* UK gas system was 18 million cubic metres oversupplied on Friday morning, with demand forecast at 145.9 mcm and supply at 163.9 mcm, National Grid data shows.

* The oversupply is largely due to reduced exports from Britain to the continent for this time of the year and improved receipts of gas at Barrow gas terminal, Refinitiv analysts said in a morning note.

* However, flows through the Langeled pipeline have dropped to zero.

* Gassco said the halt was a normal adjustment of gas flows, and that flows should be back in a few hours.

* The Langeled flow drop did not impact the prices. Traders said the market was quite relaxed about flows returning in a few hours, but it had created confusion as no announcement was made by the operator.

* "If you see that the flow is zero but not the nomination and no REMIT message, that creates confusion," one said.

* The price of benchmark EU carbon permits which was one of the factors supporting gas prices on Thursday dropped 0.84 euro a tonne to 28.18 euros a tonne.

* Peak wind generation fell to 4.4 gigawatts (GW) on Friday from 6.6 GW, Elexon data showed.

* The August contract was trading 0.07 pence lower at 27.85 p/therm.

* In the Dutch gas market, the day-ahead price at the TTF hub edged down by 0.17 euro to 10.13 euros per megawatt hour. (Reporting by Ekaterina Kravtsova; editing by Nina Chestney)