NORDIC POWER-Forward prices slip on higher water reserves, lower European energy rates

March 26 (Reuters) - Nordic forward prices fell on Wednesday, pressured by higher water reserves in the hydropower-reliant region and weaker European gas prices.

The Nordic front-quarter baseload power contract ENOFBLQc1 dropped to its lowest level in over a week to 23 euros per megawatt hour (MWh), as of 1122 GMT.

The Nordic front-year contract ENOFBLYc1 shed 0.31 euros to 35.85 per megawatt hour (MWh).

The gas market and Nordic water reserves were bearish on Wednesday, said Sigbjorn Seland, chief analyst at StormGeo Nena Analysis, adding that the market is speculating on the return of Russian gas supply to Europe following a possible Ukrainian peace deal.

Nordic water reserves available 15 days ahead PCAEC00 were seen at 11.92 terawatt hours (TWh) above normal, compared with 10.85 TWh on Tuesday.

LSEG meteorologist Georg Muller said that weather will be initially unsettled and rather wet until the weekend, but next week will see calmer and drier weather with increasing sunny intervals especially in the south

Dutch and British gas prices edged lower 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. NG/EU

In the European carbon market, the benchmark contract CFI2Zc1 was flat at 70.5 euros a tonne.

German year-ahead power TRDEBYc1 remained unchanged at 85 euros per MWh.

The Nordic power price for next-day physical delivery FXSYSAL=NPX, or system price, rose 6.48 euros to 44.55 euros per MWh.