UK GAS-Prices fall on lower demand, lockdowns

OSLO, Nov 6 (Reuters) - British wholesale gas prices fell on
Friday morning driven by lower demand amid milder weather and
fresh lockdowns across Europe to halt the spread of COVID-19.

* The day-ahead contract fell 1.20 pence to
37.25
pence per therm by 0920 GMT.

* The major bearish driver was lower local distribution zone
(LDZ)
consumption, which was down 36 million cubic metres (mcm) versus
a previous forecast to 143 mcm/day for Monday, analysts at
Refinitiv said in a morning report.

* Temperatures in Britain should rise from 6.7 degrees
Celsius on
Friday to 11.8C on Monday, Refinitiv Eikon data showed.

* Around 80% of Britain's homes are heated by gas boilers,
meaning
temperatures can have a big impact on demand.

* However, low wind output would support gas for power
demand next
week, which was forecast at 64 mcm/day on Monday, according to
Refinitiv Eikon data.

* Peak wind power generation would average 4.9 GW on Monday,
out
of total metered capacity of about 18 GW, Elexon data showed.

* Further out, the December contract had yet to
trade
but Dutch gas for December on the TTF was down 0.29
euros at 13.98 euros per megawatt hour.

* Across Europe countries were re-introducing preventive
measures
to combat a new wave of COVID-19 infections, which was weighing
on prices, analysts at Energy Aspects said in a note.

* "Lockdowns will cut commercial gas demand, while gas into
power
will drop on weaker-than-normal power consumption."

* Energy Aspects revised its aggregate gas demand in
Northwest
Europe, Spain and Italy for November-December to a drop of 2.7
billion cubic metres (bcm) year on year, from a previous
forecast of a 2.6 bcm rise.

* The benchmark Dec-20 EU carbon contract fell
0.60
euros to 25.38 euros a tonne.
(Reporting by Nora Buli; editing by David Evans)