EUROPE GAS-Prices rangebound amid stable supply and demand

LONDON, May 16 (Reuters) - Dutch and British wholeale gas prices traded in a narrow range on Friday morning amid stable supply and demand, but the market is keeping an eye on any developments related to Ukraine peace talks.

The benchmark Dutch front-month contract TRNLTTFMc1 was down 0.15 euro at 35.13 euros per megawatt hour (MWh) or $11.51/mmBtu, by 0900 GMT, LSEG data showed.

The Dutch day ahead contract TRNLTTFD1 was down 0.25 euro at 34.70 euros/MWh.

The British day-ahead contract TRGBNBBD1 was down 0.85 pence at 80.15 pence/therm.

Local distribution zone (LDZ) demand, mainly used for heating, is forecast 116 gigawatt hours per day (GWh/d) lower for the day ahead, and down 67 GWh/d to 904 GWh/d for working days next week, LSEG data showed.

Meanwhile, demand for gas for power generation across north-west Europe is forecast 173 GWh/d higher on the day-ahead due to lower wind generation expectations, according to LSEG data.

"Our outlook remains unchanged. We expect TTF day ahead to continue trading within the observed narrow range, supported by a stable supply-demand balance," said Wayne Bryan, head of European gas research at LSEG, said in a morning note.

Russian and Ukrainian negotiators were in Istanbul on Friday for what was billed as their first direct peace talks in more than three years, under pressure from U.S. President Donald Trump to end Europe's deadliest conflict since World War Two.

Putin on Sunday proposed direct negotiations with Ukraine in Istanbul, Turkey, but the Kremlin late on Wednesday named a delegation that did not include the president.

"This does seem to have frustrated expected progress from earlier in the week when the idea of a face-to-face meeting was suggested, by President Putin," consultancy Auxilione said in a daily note.

In the European carbon market, the benchmark contract CFI2Zc1 was up 0.87 euro at 74.31 euros a metric ton.