LONDON, Oct 28 (Reuters) - British long-term gas prices fell on Friday as a rally a day earlier driven by eurozone rescue proposals ran out of steam and as low demand and stable supply weighed on prompt contracts.
Benchmark front-season gas edged 0.45 pence lower on Friday morning to 62.50 pence per therm as downward momentum returned to the market following Thursday's gains on EU leaders' proposals to ease the region's debt crisis.
"A lot of the move yesterday was riding on the general macro bullishness in the wake of the Greek deal and gas is just reconnecting with its bearish fundamentals today," one UK gas market analyst at a utility said.
Prompt contracts also reversed Thursday's gains, falling on the back of weak demand, healthy gas storage levels and steady supply from Norway and liquefied natural gas (LNG) terminals.
Monday gas traded at 60.00 pence, down nearly one pence from the previous day-ahead price.
Weather conditions in Britain were forecast to remain mild over the weekend, with strong winds expected from Saturday, the Met Office said.
DEMAND & SUPPLY
Mild weather capped demand for gas used in heating systems. Gas consumption was pegged 7 percent below seasonal norms on Friday morning, according to National Grid figures.
Imports from Norway via the Langeled pipeline remained strong at over 60 million cubic metres per day (mcm/day).
Britain's three main LNG terminal were also adding supply to the market on Friday morning, while medium-range storage sites reduced output from high overnight levels.
Stocks at Britain's largest storage site, Rough, also remained near peak levels, despite some first withdrawals last week.
But the outlook for LNG supply in November was bleak with no scheduled cargo arrivals beyond the weekend.
POWER
Monday power prices also fell, tracking losses in the gas market and reacting to forecasts of strong wind speeds, which are expected to power Britain's wind power turbines.
Monday baseload power fell to 46.80 pounds per megawatt-hour (MWh), down nearly one pound from the previous session.
Saturday wind power production forecasts were also high at around 3,500 MW expected late in the day, National Grid data showed.
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