UK GAS-Prices fall on robust supplies

LONDON, July 4 (Reuters) - British wholesale gas prices fell on Tuesday morning, reversing some of the gains made in the previous trading session, as supplies from Norway and domestic production increased. * British within-day gas price was down by 1.25 pence at 37.55 pence per therm at 0742 GMT. * Day-ahead gas price was 0.75 pence lower at 37.50 p/therm. * Prompt prices rose more than 5 percent in late afternoon trading on Monday due to expectations of lower wind output, which increases gas-for-power demand. * Flows through the Langeled pipeline from Norway remain high at 42 mcm and UK Continental Shelf flows have increased after disruption on Monday to Bacton Shell flows has ended. * "This is the main reason the system is slightly oversupplied today and the main bearish risk for near-term contracts going forward as it increases the likelihood that (UK gas) will disconnect from Continental (IOB: 0LQ1.IL - news) hubs at some point this month," said Oliver Sanderson, gas analyst at Thomson Reuters (Dusseldorf: TOC.DU - news) . * UKCS production is expected to remain stable until July 7 when maintenance at the Dimlington terminal will start, with an impact of 5 mcm/day. * The system was oversupplied by around 2 million cubic metres (mcm), with flows forecast at 192.7 mcm/day and demand at 190.9 mcm, according to National Grid (LSE: NG.L - news) data. * Peak wind generation is seen at 983 megawatts on Tuesday, rising slightly to 1,469 MW the following day, Elexon data shows. * August gas contract declined by 0.25 pence to 37.55 p/therm. * Day-ahead gas price at the Dutch TTF hub was down by 0.50 euro to 15.30 euros per megawatt hour * Benchmark Dec-17 EU carbon contract was 0.05 euro lower at 5.09 euros a tonne. (Reporting by Nina Chestney)

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