UK GAS-Prices rise, correcting losses last week

LONDON, June 1 (Reuters) - British wholesale gas prices rose
on Tuesday morning, correcting losses on Friday, in spite of
lower demand and oversupply.

* The day-ahead contract rose by 1.85 pence to
63.75
pence per therm by 0818 GMT.

* Gas for immediate delivery was 1.50 pence
higher at
64.00 p/therm.

* Traders said prompt prices were correcting losses on
Friday,
when forecasts for windier and warmer weather conditions curbed
demand.

* "Despite bearish fundamentals we may see some correction
on the
market today after Friday’s sharp drop. Carbon price moves may
also provide some impact today," said Iryna Sereda, gas analyst
at Refinitiv.

* UK domestic production is curbed by maintenance at the
Forties
Pipeline System at 40 million cubic metres (mcm).

* However, the system was around 15 million cubic metres
(mcm)
over-supplied, with demand forecast at 140 mcm and supply at 155
mcm/day, National Grid data showed.

* Warmer temperatures are expected compared to previous
forecasts
in Britain, Refinitiv Eikon data showed.

* Peak wind generation is forecast at 8.4 gigawatts (GW) on
Tuesday and 8.7 GW on Wednesday, out of total metered capacity
of around 20 GW, Elexon data showed.

* UK Q3 gas was 2.00 pence higher at 63.50
p/therm.

* The Dutch gas July contract was 1.03 euro
higher at
26.13 euros per megawatt hour.

* The benchmark Dec-21 EU carbon contract was up
by 1.21
euro at 52.91 euros a tonne.

* The equivalent Dec-21 British carbon contract
was flat
at 48.50 pounds per tonne.
(Reporting by Nina Chestney)