EUROPE GAS-Prices rise on supply and low stocks fears

LONDON, Nov 30 (Reuters) - European and British wholesale
gas prices rose on Tuesday morning, as concerns about low stock
levels and weak supplies from Russia offset fears over a new
coronavirus variant.

* The British day-ahead gas contract was up 18
pence
at 2.52 pounds per therm by 1000 GMT.

* The Dutch equivalent day-ahead gas price rose
5.22
euros to 99.10 euros per megawatt hour (MWh).

* Other markets, such as oil, have experienced sharp drops
over
the past few days on concern the Omicron coronavirus variant
could spread rapidly and dent fuel demand.

* However, traders said European gas stocks remain at lower
than
usual levels this winter and gas market fundamentals remain
bullish.

* "Colder weather forecast and concerns around Russian
supply from
the start of December are the main factors that are supporting
our bullish view," analysts at Refinitiv said in a daily
research note.

* The analysts forecast British local distribution zone
(LDZ)
demand, which is primarily used for heating, at 221 million
cubic metres a day for Wednesday, up 16 mcm on the previous
forecast

* The British contract for December delivery
rose
11.75 pence to 2.518 pounds per therm.

* The benchmark Dutch front-month contract was
up 4.2
euros at 99.00 euros/MWh.

* Meanwhile, Russian natural gas supplies to Germany through
the
Yamal-Europe pipeline remained stable over Monday and Tuesday,
data from German network operator Gascade showed.

* Gazprom has not booked any capacity through the pipeline
for
December so unless it begins booking on a daily basis flows may
return to zero, analysts warned.

* In other markets, the European benchmark December 2021 EUA
contract was up 0.64 euros at 74.85 euros/tonne.
(Reporting By Susanna Twidale; Editing by Emelia
Sithole-Matarise)

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