* System oversupply by 20 mcm
* UKCS flows higher as outages end
LONDON Dec 30 British wholesale gas prices
declined on Friday morning due to increased flows from the UK
Continental Shelf as several outages ended in the North Sea.
Gas for immediate delivery was down 1.05 pence
at 51.50 pence per therm at 0841 GMT.
The system is oversupplied by around 20 million cubic
metres, with demand forecast at 295 mcm and flows at 315
mcm/day, National Grid data shows.
Flows are back to 30 million cubic metres (mcm) per day from
Shell's St Fergus terminal after an outage ended and Engie E&p
UK's Cygnus offshore facilities have returned to full
Flows from the North Morecambe gas sub-terminal have also
resumed following an outage.
However, day-ahead gas rose by 0.85 pence to
Thomson Reuters analysts said the temperature forecast for
Saturday is 2.8 degrees Celsius below normal, which should boost
demand for gas for heating.
Oil prices are on track for their biggest annual percentage
gain since 2009 on the back of an agreement struck between OPEC
and non-OPEC countries to cut crude production output.
In the European Union's carbon market, the benchmark Dec-17
carbon contract was 0.07 euro higher at 6.44 euros a
In the Netherlands, the day-ahead gas price at the TTF
hub was 0.58 euro higher at 19.50 euros per megawatt
(Reporting by Nina Chestney)