EUROPE GAS-Prices hold steady as bullish risk premium fades

Feb 10 (Reuters) - British and Dutch gas prices traded
mostly sideways on Thursday, finding some support from lower
Russian pipeline flows, but mild weather and lower demand
dampened the upside potential.

The British day-ahead gas price was down 0.50
pence at 183 pence per therm by 0924 GMT, while the within-day
contract firmed 1 pence to 183 pence/therm

The Dutch day-ahead contract at the TTF hub was
up by 0.45 euros at 76.10 euros per megawatt hour (MWh) and the
benchmark TTF contract for March eased by 0.15
euros to 75.50 euros/MWh.

Trading was range-bound with the market taking a breather
until the next price shock, either to the up or downside, one
analyst said.

"Fundamentals are very bearish, and geopolitical premium is
fading," he added.

Temperatures in Britain and Europe will briefly drop below
normal over the next two days, but the week ahead will be very
mild and windy, lowering gas demand, Refinitiv forecasts showed.

Gas flows via the Yamal-Europe pipeline, which usually
travel west from Russia to Europe, remain in steady reverse,
while supplies through Ukraine into Europe via Velke Kapusanu
dropped to their lowest level since Jan. 23.

The lower Velke Kapusany flows could provide some
bullishness, although their recent volatility has been largely
priced in by the market and today's flows are unlikely to have a
major effect on the day-ahead DA market, Refinitiv analyst Yuriy
Onyshkiv said in a morning report.

There was no "game-changing news" on the geopolitical front
regarding the Russian military build-up around Ukraine.

"Any escalation in eastern Europe or threat thereof remains
an upside risk," he said.

In other markets, the benchmark December 2022 carbon
contract was up 0.72 euros at 91.51 euros per tonne.

It fell sharply on Wednesday afternoon, after comments from
a key European lawmaker suggesting changes to rules on how to
address price spikes spooked the market.
(Reporting by Nora Buli in Oslo; editing by David Evans)