EUROPE GAS-Prices edge lower on mild temperatures, energy attack pause

LONDON, March 26 (Reuters) - Dutch and British gas prices edged lower on Wednesday morning as mild temperatures curbed gas demand and the U.S. reached deals with Ukraine and Russia to pause attacks at sea and against energy targets.

The Dutch front-month contract TRNLTTFMc1 was down by 0.15 euro at 40.97 euros per megawatt hour (MWh) or $12.96/mmBtu, by 0917 GMT, LSEG data showed.

The Dutch May contract TRNLTTFMc2 was down 0.75 euro at 40.95 euros/MWh.

The British day-ahead contract TRGBNBBD1 was down 0.80 pence at 99p/therm on ICE.

"The major bearish driver comes from an improved weather forecast, especially for next week," LSEG analyst Ulrich Weber said.

LSEG forecast working-day-next-week temperatures in Britain up 1.7 degrees Celsius, LSEG data showed, curbing demand for gas.

In Northwest Europe, temperatures are forecast to rise by 0.8 degrees Celsius for the working-day-next-week, which translates to a drop of 276 gigawatt hours/day in gas demand for heating, LSEG analysts said.

The United States reached separate deals on Tuesday with Ukraine and Russia to pause their attacks at sea and against energy targets in the first formal commitments by the two warring sides since U.S. President Donald Trump's inauguration.

The news had little impact on prices.

"Of course, a ceasefire on Ukraine that would lead to a resumption of Russian flows could change the outlook," analysts at Engie EnergyScan said in a daily market note.

In the European carbon market, the benchmark contract CFI2Zc1 edged down by 0.46 euro at 70 euros a metric ton.