NORDIC POWER-Forward prices dip on rising water levels, lower gas rates

April 7 (Reuters) - Nordic forward power prices extended decline on Monday, weighed down by higher water reserves and lower European gas rates, while fear of a global recession due to U.S. president Donald Trump's tariffs kept investors on the edge.

The Nordic front-quarter baseload power contract ENOFBLQc1 dropped 0.4 euros to 16.65 euros per megawatt hour (MWh) as of 1126 GMT, and hovered near its lowest since November 2020.

The Nordic front-year contract ENOFBLYc1 lost 1.05 euros at 33.25 euros per MWh and hit its lowest since January 2025.

Nordic water reserves available 15 days ahead PCAEC00 were seen at 11.86 terawatt hours (TWh) above normal, compared with 10.86 TWh on Friday.

Ole Tom Djupskaas, power analyst at LSEG, said "If a recession is coming up and people are believing more in that, then the stocks keep falling and everything just follows along with power and gas demand, so I think that's what's happening now." MKTS/GLOB

Dutch and British gas prices continued to fall on Monday morning as warmer temperatures and fears of a global trade war leading to weaker energy demand weighed on the market. NG/EU

German year-ahead power TRDEBYc1 edged 0.56 euros lower to 79.25 euros per MWh.

"But at the same time, the prices in the Nordics are very low at the moment for both May and Q3 (contracts), very close to the strong support levels, I would say. I don't expect it to fall much further actually," Djupskaas added.

In the European carbon market, the benchmark contract CFI2Zc1 fell 2.4 euros to 61.42 euros a ton.

"Next week could be more active in the south too with near or above-normal temperatures and precipitation," said LSEG meteorologist Georg Muller.

The Nordic power price for next-day physical delivery FXSYSAL=NPX, or system price, dropped 20.14 euros to 48.75 euros per MWh.