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UK GAS-Prices rise, correcting losses last week

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.
Source: Reuters (Reporting by Nina Chestney)

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