LONDON, Aug 23 (Reuters) - Dutch and British wholesale gas prices were mostly lower on Friday morning, trading in a narrow range amid cooler temperatures and weak renewables generation, while the market closely monitors supply risks.
The benchmark front-month contract at the Dutch TTF hub TRNLTTFMc1 was down 0.29 euro at 36.43 euros per megawatt hour (MWh), or 11.87 $/mmBtu by 0844 GMT, according to LSEG data.
In the British market, the front-month contract TRGBNBPMc1 was down 0.75 pence at 87.25 pence per therm.
Supply fundamentals are slightly bullish on the day ahead with a 320 gigawatt hour per day (GWh/d) increase in heating demand and gas for power demand due to cooler temperatures and softer renewable production forecasts, notably wind, LSEG analyst Wayne Bryan said.
Temperatures will dip below normal in the UK and Northwest Europe, over the coming days and into next week, LSEG data showed.
In addition, weaker wind generation is forecast in Germany, with wind speeds seen falling by 19 GWh/h on Monday, while solar forecasts were down by 1.7 GWh/h, according to LSEG data.
Meanwhile, the market continues to closely monitor Gaza peace talks and the Ukraine-Russian conflict.
On Friday gas flows into Ukraine for Europe from Russia via the border point of Sudzha were set at 42.4 million cubic metres (mcm) of gas to Europe, unchanged from Thursday.
"The market continues to see little change in developments further afield that have caused concern in recent weeks, allowing some of the risk premium to be removed. It does, however, retain that underlying nervousness and could still react to any concerning news," consultancy Auxilione said in a morning note.
European gas storage levels have reached 90.54% of capacity, having hit a Nov. 1 target two months early, Gas Infrastructure Europe data showed.
In the European carbon market, the benchmark contract CFI2Zc1 eased 0.01 euro to 71.58 euros per metric ton.
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