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UK GAS-Prices fall on weaker demand, lower oil

* Gas system oversupplied by 11 mcm/d

* Flows from Teesside PX terminal seen up

Aug 11 (Reuters) - British wholesale gas prices fell on Thursday on weaker demand resulting in an oversupplied system, and lower oil prices.

Gas for immediate delivery fell 0.2 pence or 0.62 percent, to 32.20 pence per therm by 0918 GMT, while day-ahead contract lost 0.45 pence or 1.37 percent,to 32.45 pence/therm.

The UK gas system was about 11 million cubic metres (mcm) oversupplied, based on opening and expected end-of-the-day linepack gas volumes, National Grid (LSE: NG.L - news) data showed.

While supply from the UK continental shelf remained largely steady, gas demand fell due to higher output from wind power turbines and lower exports, traders said.

Wind power output is expected to peak at 5.4 GW on Thursday and 5.7 GW on Friday, compared with total installed capacity of almost 9 GW.

Teesside PX terminal flows rose on Thursday, offsetting lower flows from Norway via the Langeled pipeline.

Flows from St Fergus Mobil (SAGE) and Barrow South were down to zero due to ongoing maintenance and outages.

LNG tanker Rasheeda is scheduled to deliver a cargo from Qatar on Aug. 13, while tanker Yari LNG has docked at Isle of Grain terminal to load.

Thomson Reuters (Dusseldorf: TOC.DU - news) analysts said they expected LNG deliveries to the UK's gas system to remain at around 22 mcm/day.

Oil prices fell on Thursday on fears that supply glut will last well into next year due to rising U.S (Other OTC: UBGXF - news) . crude inventories and record Saudi Arabian production, weighing on longer-term gas prices.

Contract for gas delivery next-month fell 0.31 pence to 32.95 pence/therm, while gas for next winter was down 0.15 pence to 42.10 pence/therm.

Dutch day-ahead gas prices at the TTF hub fell 0.4 euro or 3.2 percent to 12.28 euro/MWh.

In the European carbon market, front-year allowances remained unchanged to 4.77 euros a tonne. (Reporting by Nerijus Adomaitis in Oslo; Editing by Keith Weir)

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