EUROPE GAS-Prices fall amid gas storage target extension, warmer temperatures

LONDON, March 5 (Reuters) - Dutch wholesale gas prices fell on Wednesday afternoon amid warmer temperatures and as the European Commission proposed a two-year extension of winter gas storage fill targets but signalled flexibility over interim targets.

The benchmark front-month contract at the Dutch TTF hub TRNLTTFMc1 was down 2.15 euros at 41.15 euros per megawatt hour (MWh) by 1648 GMT, according to LSEG data.

The Dutch May contract TRNLTTFMc2 fell by 0.90 euro to 41.86 euros/MWh.

The European Commission proposed on Wednesday retaining the EU's gas storage requirements and targets for two more years but it said the targets in earlier months are "indicative" - which, in EU legislation, typically means not binding.

The requirement to meet interim filling targets has stoked prices over the past few months.

Warmer temperatures until the end of the week have also led to expectations of reduced demand.

Analysts at LSEG forecast total demand in North West Europe is expected to drop by around 500 gigawatt hours a day for the day-ahead.

"The increasing trade war talks from Donald Trump and the fears that it could affect demand in Europe added to the negative sentiment," analysts at Energi Danmark said in a daily research note.

The Commission also delayed an announcement to accelerate the end of Russian energy imports for a second time from March 26 to an unspecified date, a schedule showed on Wednesday.

In the British market, the April contract was down 4.18 pence at 99.49 pence per therm.

In the European carbon market, the benchmark contract CFI2Zc1 inched down 0.28 euro to 68.22 euros per metric ton.