Prices fall on high wind power output

LONDON, May 2 (Reuters) - British and Dutch wholesale gas prices fell on Tuesday as expectations of strong wind power output curbed demand.

The British within-day contract fell by 2.50 pence to 88.50 p per therm by 0900 GMT, according to Refinitiv Eikon data.

British gas demand for power was expected at 64 million cubic metres (mcm) on Tuesday, falling to 47 mcm on Wednesday, Refinitiv Eikon data showed.

The forecasts were 10 mcm and 33 mcm lower respectively than previous estimates.

British peak wind power generation was expected at 3.4 gigawatts (GW) on Tuesday rising to 9.3 GW on Wednesday, Elexon data showed.

High wind power output was also expected to curb gas demand in Europe, Refinitiv analysts said.

In the Dutch market the front-month contract edged down by 0.40 euros to 38.10 euros/MWh.

The Dutch July contract < TRNLTTFMc2> fell by 0.90 euros to 38.50 euros/MWh.

“The bearish pressure might be also supported by solid fundamental factors including a solid supply of LNG (liquefied natural gas) and Norwegian imports,” Refinitiv analyst Tomasz Marcin Kowalski said in a daily research note.

High storage levels were also pressuring prices, Kowalski said.

Europe’s gas storage sites are 58.3% full, the latest data from Gas Infrastructure Europe showed.

Russia's Gazprom said it will send 39.8 million mcm of gas to Europe via Ukraine on Tuesday, compared with 37 mcm on Monday.

In the European carbon market, the benchmark contract rose by 0.24 euros to 86.15 euros a tonne.