UK GAS-Prices ease from Thursday's highs on higher Norway flows, correction

July 2 (Reuters) - British wholesale gas prices eased on
Friday on higher flows from Norway and a correction following
Thursday's rally that lifted several contracts to record highs.

* The British August contract was down 0.45
pence at
88.50 p/therm by 0820 GMT.

* The within-day contract was down 2 pence at
90.00
p/therm, while the day-ahead contract fell by 2.15
pence to 90.25 p/therm.

* On Thursday, prompt prices hit their highest levels since
March
2018, while the British and Dutch front-month contracts both hit
record highs amid a global gas price rally.

* "A lot of buyers, including industrials, have not hedged
their
portfolios for Q3 and later, and now have to buy at much higher
prices due to the risks of a supply squeeze," analysts at Energi
Danmark said in a note.

* The front-month contract at the Dutch TTF hub
was
down 1.18 euros at 34.72 euros per megawatt hour.

* "The recent price upside appears overcooked and is due a
correction," Refinitiv analyst Wayne Bryan said in a morning
report.

* Production in Norway and the UK is expected to lift as
maintenance work is scheduled to ease, he said.

* Flows of Norwegian gas to Britain were up by 6 mcm,
according to
Refinitiv data.

* The British gas system was around 17 million cubic metres
over-supplied on Friday morning, National Grid data showed.

* However, a lack of liquefied natural gas supplies (LNG)
and
rising coal and carbon prices remained bullish factors that
could stunt storage injections, Refinitiv's Wayne added.

* The conclusion of the OPEC meeting should inject
volatility into
Friday's trading as well, he added.

* The benchmark Dec-21 EU carbon contract fell by
0.43
euro to 57.22 euros a tonne.

* The benchmark Dec-21 British carbon contract was
down
0.32 pounds at 47.50 pounds a tonne.
(Reporting by Nora Buli in Oslo; editing by David Evans)

National Grid