NORDIC POWER-Front-quarter prices rise on firm European gas prices and tight water reserves
March 17 (Reuters) - Nordic power prices for the front quarter to June edged up on Tuesday, supported by stronger European gas prices and lower water reserves in the hydropower-dependent region.
Nordic front-quarter baseload power contract ENOFBLQc1 gained 0.15 euros to 57.75 euros per megawatt hour (MWh).
Nordic front-year power contract ENOFBLYc1 slipped 0.2 euros to 45.25 euros per MWh.
"Mainly higher gas prices. That’s giving some support to power, even if the move is quite limited," said Lukas Sigg, CEO of Nordic Energy Consulting.
Power prices for Germany's year-ahead contract TRDEBYc1, Europe's benchmark, dropped 0.95 euros, or 1%, to 91.6 euros per MWh.
In the European carbon market CFI2Zc1, the benchmark contract fell 3.6 euros, or 5.2%, to 65.4 euros a ton.
Oil prices rose by about 3%, clawing back some of the previous session's losses as Iranian attacks on the United Arab Emirates rekindled supply fears while the Strait of Hormuz, through which about 20% of global oil and liquefied natural gas flows, remains largely shut. O/R
The U.S.-Israeli war on Iran is in its third week, with at least 2,000 people killed and no end in sight.
"The market looks a bit stuck for now. Direction will likely come from gas and carbon. Near-term I’d expect Q2 to stay roughly in the mid–50s unless we get a clearer signal," Sigg said.
Elsewhere, Nordic water reserves PCAEC00 fell to 25.81 terawatt hours (TWh) below normal from 25.54 TWh below normal on Monday.
"The next few days will be affected by high pressure influence in the south, while the west and north will see some low pressure activity with occasional rain," said LSEG meteorologist Georg Mueller.
"Temperatures will remain slightly above normal with no major colder than normal spells in the remainder of March," Mueller added.
The Nordic power price for next-day physical delivery FXSYSAL=NPX, or system price, was up 11.67 euros, or 18.2%, to 75.93 euros per MWh.
