UK GAS-Prompt prices retreat on strong oversupply

Oslo, Nov 4 (Reuters) - British wholesale gas prices fell on
Wednesday morning on a strongly oversupplied system.

* The within-day contract fell by 2 pence to
36.90
p/therm by 0930 GMT.

* The day-ahead contract had not traded yet.

* Prices fell because of a "very long system" and strong
send-out
of liquefied natural gas (LNG), one trader said.

* National Grid data showed system oversupply of 32.2
million
cubic metres (mcm) on Wednesday morning, with demand at 271.4
mcm and flows at 303.6 mcm/day.

* Meanwhile, LNG send-out had increased by 9 mcm to 60
mcm/day as
more tankers arrived in Britain, Refinitiv analysts said in a
report. [LNG/TKUK)

* In addition, storage had switched to withdrawal mode while
Norwegian gas flows increased, the analysts said.

* Slow wind speeds and cool weather offered some support.

* Peak wind power generation is forecast at 6.3 gigawatts
(GW) on
Wednesday and 5.7 GW on Thursday, out of total metered capacity
of about 18 GW, Elexon data shows.

* Temperatures in Britain are expected to average below
seasonal
norms, with forecasts of 5.6 degrees Celsius on Wednesday and
5.1 degrees on Thursday, Refinitiv Eikon data shows.

* Gas for power demand was forecast at 67 mcm/day for
Wednesday
and 72 mcm/day for Thursday, up 15 mcm and 8 mcm respectively
from previous Refinitiv Eikon estimates.

* Britain's power system operator National Grid issued an
electricity margin note for Wednesday from 1630-1830 GMT,
requesting additional generation capacity because of a forecast
system margin shortfall of 740 megawatts.

* Further out, the December contract fell 0.15
pence
to 39.5 p/therm.

* Dutch December gas on the TTF hub was down
0.05
euros at 13.70 euros per megawatt hour.

* The benchmark Dec-20 EU carbon contract fell
0.32
euros to 24.07 euros a tonne.
(Reporting by Nora Buli
Editing by David Goodman
)