UK GAS-Prices up on lower wind power output

July 7 (Reuters) - British wholesale gas prices rose on
Wednesday morning as lower wind power output was expected to
result in higher gas demand for power generation.

* The day-ahead contract was up 2.25 pence at
85.50
p/therm by 0755 GMT

* The August contract was trading 2.55 pence
higher
at 84.00 p/therm.

* Peak wind power generation is forecast at 6.9 gigawatts
(GW) on
Wednesday, falling to 3.6 GW on Thursday, Elexon data showed.

* UK gas-for-power demand is forecast to increase by 16
million
cubic metres (mcm) as wind speeds slump back below normal
levels, Refinitiv Eikon analysts said.

* Gas prices have been rallying for some time but yesterday
there
was a sell-off in the afternoon.

* "Volatility remains high and today could be opportunity
for dip
buying or the sell-off may continue. However it appears highly
improbable we will see a repeat of yesterday’s heavy selling,"
said Wayne Bryan, gas analyst at Refinitiv.

* Britain's gas system was over-supplied by 7 mcm, with
daily
demand forecast at 137.7 mcm and supply at 144.7 mcm, National
Grid data showed.

* Oil prices steadied on Wednesday after a steep drop in the
previous session, following the cancellation of talks among
OPEC+ producers on extending supply constraints.

* The Dutch gas for August delivery rose by
1.16 euro
to 34.36 euros per megawatt hour.

* The benchmark Dec-21 EU carbon contract was down
0.17
euro at 53.85 euros per tonne.

* The benchmark Dec-21 British carbon contract was
flat
at 45 pounds a tonne.
(Reporting by Nerijus Adomaitis in OSLO; editing by Nina
Chestney)