UK GAS-Prices fall due to oversupply, lower demand

Oct (Shenzhen: 000069.SZ - news) 6 (Reuters) - British wholesale gas prices fell on Friday as increased flows from Norway created an oversupplied system and demand declined. * Within-day gas price down by 0.80 pence at 46.50 pence/therm at 0834 GMT. * Day-ahead gas fell by 0.30 pence to 47.10 pence per therm. * The November gas contract fell by 0.57 pence to 49.60 pence per therm. * A long system and lower demand due to expectations of a slight rise in temperature and higher wind generation were putting pressure on prices, a gas trader said. * Gas prices were due to a long gas system and low demand, a gas trader said. * Britain's gas system was oversupplied by 33 million cubic metres (mcm), with demand forecast at 207.0 mcm and supply at 240.5 mcm/day, National Grid (LSE: NG.L - news) data showed. * Average temperatures on Friday could reach 16 degrees Celsius in southern Britain and are forecast to rise by 1 degree by the end of the weekend, Britain's Met Office said. * Peak wind power generation is forecast at 7.5 gigawatts (GW) on Friday and is expected to rise to 8.5 GW on Saturday (Shenzhen: 002291.SZ - news) , Elexon data showed. * Gas supply from Norway to Britain jumped to 110 million cubic meters per day (mcm/day) on Friday from 89 mcm/day, boosted by a 14 mcm/day increase in flows through the Langeled pipeline. * "Slightly higher total consumption, planned shutdown at Vesterled, Kollsness and Troll are the drivers which should tighten the NBP (Shanghai: 601018.SS - news) system next week," said Thomson Reuters (Dusseldorf: TOC.DU - news) gas analysts. * "However, the continuation of strong Rough withdrawal and the possible production restart at North Morecambe and Corrib fields are bearish price risks," they added. * In the Dutch gas market, the day-ahead gas price at the TTF hub fell by 0.35 euro to 17.55 euros per megawatt hour (MWh). * The benchmark Dec (Shanghai: 600875.SS - news) -17 EU carbon contract was 0.07 euro lower at 6.82 euros a tonne. * Thomson Reuters analyst view: http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageid=united-kingdom-gas (Reporting by Lefteris Karagiannopoulos in Oslo; editing by Nina Chestney)