EUROPE GAS-Prices rise on cooler temperatures, supply fears

LONDON, Dec 7 (Reuters) - European and British wholesale gas
prices rose on Tuesday morning with cooler temperatures and
concerns over winter supply buoying the market.

* The British day-ahead gas contract rose 16.30
pence
to 2.417 pounds per therm by 1047 GMT.

* The Dutch day-ahead contract rose 8.13 euros
to
95.70 euros per megawatt hour (MWh).

* The benchmark Dutch front-month contract was
up 6.2
euros at 95.70 euros/MWh.

* Traders said expectations of colder temperatures and
continued
weak flows from Russia pushed prices higher, while rising
tensions between the west and Russia over a build-up of troops
on the Ukrainian border was also adding bullish geopolitical
sentiment.

* "With the current cold weather spell across Europe the LDZ
(local distribution zone) consumption in the UK and on the
Continent is projected well above seasonal normal this week,"
analysts at Refinitiv said in a daily research note.

* U.S. President Joe Biden and Russian President Vladimir
Putin
will speak by video link on Tuesday to discuss a number of
issues.

* Russian natural gas deliveries to Germany through the
Yamal-Europe pipeline were largely stable in the early hours of
Tuesday, data from German network operator Gascade
showed.

* European stock levels also remain low, adding to ongoing
supply
fears.

* “The reduction in gas storage levels has added to concerns
of a
lack of supply in the event of an extended cold snap or other
high gas demand scenarios. This has the potential to elevate
prices further,” said Lee Drummee, Analyst at Cornwall Insight.

* The European benchmark December 2021 EUA contract
was
up 1.79 euros to 83.04 euros/tonne having hit a record high of
83.17 euros.

* Traders said high gas prices are increasing demand for
permits
from coal-power plant operators, while buying has also increased
ahead of the contract's expiration later this month.
(Reporting by Susanna Twidale; editing by Jason Neely)

National Grid