LONDON, Dec 31 (Reuters) - British gas prices for Jan. 2

were slightly higher on Monday as demand was forecast to rise

when factories and offices reopen following Tuesday's public

holiday.

The price of gas for day-ahead delivery was up 0.25 pence to

62.00 pence per therm at 1100 GMT. The contract is dated on Jan.

2 because of the New Year's Day public holiday.

Prices may take on an increasingly bullish tone as the

system 'looks tighter for day-ahead with less room for storage

injections', analysts from Thomson Reuters Point Carbon said in

a daily report.

On Monday, data from National Grid showed the market to be

oversupplied by almost 20 million cubic metres (mcm) due to

largely uninterrupted pipeline flows and increased supplies of

liquefied natural gas (LNG).

'Current UK Continental Shelf (UKCS) volumes are 149 mcm/d,

in line with yesterday but significantly up from Friday. In

addition LNG supplies from South Hook are up at 35 mcm/d as

stock levels approach fullness with the latest arrivals

currently offloading,' Point Carbon analysts said.

Meanwhile, estimates from National Grid for Monday showed

demand to be 257 mcm, 41.4 mcm below the seasonal norm and 19.9

mcm lower than supply.

Britain's gas system has flipped into export mode as gas is

being pumped to continental Europe.

Figures from Gas Infrastructure Europe showed that British

storage sites are around 84 percent full, up from around 80

percent a week ago.

The Met Office said temperatures in southern Britain could

dip to a maximum temperature of around 7 degrees on Tuesday and

Wednesday before rising again to perhaps as high as 13 degrees

at the end of the week.

Benchmark summer 2013 gas prices were down 0.30 pence at

60.75 pence/therm, while crude oil prices were down around 0.5

percent to $110/barrel as markets waited for news on last-ditch

talks between U.S. lawmakers.

The U.S. Congress is scheduled to meet on Monday in a last-

minute attempt to avoid the 'fiscal cliff' - $600 billion worth

of tax hikes and spending cuts due to kick in from Jan. 1 that

could tip the world's largest economy into recession.

(Reporting by John McGarrity; editing by Jane Baird)

((johnmcgarrity@thomsonreuters.com)(+44)(0)(207 5424779))

((GAS

UK natural gas prices

National Grid instant flows

National Grid gas demand

North Sea gas and power maintenance

POWER

UK: baseload prices, peakload prices,

outages

FRANCE: baseload prices, peakload prices, outages, report

GERMANY: baseload prices, peakload prices, outages, report

CENTRAL EUROPE: report

SWITZERLAND: outages, reservoir levels

NORDIC: report

EU CARBON PRICES SPEEDGUIDE:

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