EUROPE GAS-European gas prices edge higher on oil gains and low storage levels

LONDON, March 27 (Reuters) - Benchmark British and Dutch wholesale gas prices edged higher on Friday morning, following oil prices that rose even after U.S. President Donald Trump extended a pause in attacks on Iran's energy plants.

The benchmark Dutch front-month contract at the TTF hub TFMBMc1 was up 0.572 euros at 55.79 euros per megawatt hour (MWh), or about $18.80 per mmBtu by 0913 GMT, ICE data showed.

The British April contract NGLNMc1 was up 1.53 pence at 140.13 pence per therm, ICE data showed.

Roughly a fifth of the world’s LNG typically passes through the Strait of Hormuz, but shipping through the narrow waterway has come to a near-standstill since the U.S. and Israel began strikes on Iran on February 28.

While Trump extended to April 6 his deadline for Iran to reopen the Strait of Hormuz or face the destruction of its energy infrastructure, the U.S. has also sent thousands of troops to the Middle East, raising fears over further escalation in the region.

Oil prices rose by about 2% on Friday to more than $110 a barrel, which was also bullish for gas because many LNG and pipeline gas contracts are linked to oil prices.

Gas prices in Europe were also buoyed by low storage levels.

“Storage levels in the EU have dropped to 28% and fears are growing that it will become difficult to reach EU storage targets ahead of the next heating season,” said analysts at trading group Mind Energy.

The European Commission on Thursday urged EU governments to start refilling gas storage caverns as soon as possible to prepare for next winter, EU diplomats told Reuters.

In the European carbon market, the benchmark contract CFI2Zc1 was up 0.03 euros at 71.68 euros a metric ton.