UK GAS-Prompt prices slip as strong wind power curbs demand

LONDON, July 6 (Reuters) - Prompt British wholesale gas
prices fell on Tuesday morning with forecasts for strong output
from the country’s wind farms curbing demand for gas-for-power
generation, while curve prices rallied on oil.

* The day-ahead contract was down 0.50 pence at
92.75
p/therm by 0849 GMT.

* The August contract was 0.20 pence lower at
93.15
p/therm.

* Peak wind power generation is forecast at 7.2 gigawatts
(GW) on
Tuesday and 6.4 GW on Wednesday, Elexon data showed.

* Analysts at Refinitiv forecast gas demand for power at 28
million cubic metres (mcm) on Tuesday, down 12 mcm on the
previous forecast.

* Britain’s gas system was over-supplied, with demand
forecast at
139.0 mcm and flows at 143.7 mcm/day, National Grid data showed.

* Further out on the curve, prices remained high, boosted by
longer term supply concerns over low European stock levels and
high oil prices, traders said.

* Britain’s Winter 2021 contract traded at
100.00
pence per therm on Tuesday morning, the highest trading level
for the winter contract since Refinitiv Eikon records began.

* Oil prices surged to multi-year highs after OPEC+
producers fell
out over plans to raise supply in the face of rising global
demand.

* The day-ahead gas price at the Dutch TTF hub
was
down 0.35 euro at 37.50 per megawatt hour.

* The benchmark Dec-21 EU carbon contract was down
0.45
euro at 57.42 euros per tonne.

* The benchmark Dec-21 British carbon contract was
yet
to trade.
(Reporting By Susanna Twidale; editing by Nina Chestney)