UK GAS-Prices fall on oversupply, milder forecasts

Dec 7 (Reuters) - British wholesale gas prices fell on
Monday in an oversupplied market and with forecasts showing a
gradual return to normal seasonal temperatures after the current
cold snap.

* The within-day contract was down 2.00 pence
at
40.75 pence per therm by 0915 GMT.

* The day-ahead contract was down 1.60 pence at
41.00
p/therm.

* "Our view on NBP (National Balancing Point) for today is
bearish," analysts at Refinitiv said in their morning comment.

* The British system was oversupplied with sendout of
liquefied
natural gas (LNG) up 21 million cubic metres (mcm) per day and
production on the UK continental shelf 6 mcm/day higher,
Refinitiv data showed.

* National Grid data forecast British gas system supply at
360.3
mcm/day and demand at 351.2 mcm/day.

* Local distribution zone (LDZ) demand, which mostly mirrors
demand for heating, was forecast 7 mcm/day down for the
day-ahead as temperatures were expected to move gradually up to
normal this week, Refinitiv's analysts said.

* More wind also cut Tuesday's gas for power demand by 12
mcm/day,
they added.

* Average wind output would rise from 2.2 gigawatt on Monday
to
3.4 GW on Tuesday, while average temperatures in Britain were
forecast at 2.6 degrees Celsius on Tuesday, rising to 5.3C by
the weekend, Refinitiv Eikon data showed.

* The weekend contract was down 2.00 pence at
40.50
p/therm.

* By next week temperatures may reach double-digits again
and
there would be more wind, said a trader.

* The January gas price at the Dutch TTF hub
fell
0.57 euros to 14.00 per megawatt hour.

* The benchmark Dec-20 EU carbon contract was down
0.35
euro at 29.76 euros per tonne, after closing at its highest
point since Sept. 14 on Friday.
(Reporting by Nora Buli in Oslo; Editing by Kirsten Donovan)