EUROPE GAS-Prices fall on milder outlook, more wind power

Dec 2 (Reuters) - European and British wholesale gas prices
fell on Thursday morning on the back of a milder weather
forecast and an uptick in wind output cutting demand for gas
from power plants.

* The British within-day gas contract was down
6
pence at 2.34 pounds per therm and the day-ahead gas contract
plunged by 13.50 pence to 2.29 pounds per therm by
1102 GMT.

* The Dutch day-ahead contract fell 7.50 euros
to
90.00 euros per megawatt hour (MWh).

* The benchmark Dutch front-month contract was
down
4.45 euros at 89.30 euros/MWh.

* "The latest weather runs show milder temperatures and more
wind
for next week, hence a bit of the early week panic is
vanishing," said an energy analyst at a major steel company.

* The current slightly unsettled and moderately cold weather
is
expected to remain in place for the next 10 days, Refinitiv
meteorologist Georg Mueller said.

* "After about Dec. 10, a westerly flow is expected to
develop
over the northern Atlantic and northern Europe with milder,
wetter and windier weather there," he added.

* Refinitiv analysts forecast gas demand for heating in
Britain to
drop on Friday but rise in Northwest Europe, while demand from
the power sector will be lower for both on higher wind output.

* More arrivals of liquefied natural gas (LNG) tankers to
the UK
was also a bearish driver, Refinitiv analysts said.

* Russian natural gas supplies to Germany through the
Yamal-Europe
pipeline remained steady on Thursday, data from German network
operator Gascade showed. The pipeline is one of the major routes
for Russian gas exports to Europe.

* "Russian flows are steady, but with Gazprom failing to
book
December capacity via Mallnow, the day ahead auctions are
becoming a centre of attention. I personally don't expect too
many surprises on that front," the energy analyst said.

* In other markets, the European benchmark December 2021 EUA
contract was up 1.26 at 78.07 euros/tonne.
(Reporting by Nora Buli in Oslo; Editing by Susanna Twidale)

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