NORDIC POWER-Front-quarter rates hit over seven-week high on dry weather, low water reserves

May 11 (Reuters) - Nordic front-quarter power rates climbed to their highest in more than seven weeks on Monday, supported by drier weather forecasts and as water reserves continued to hover around eight-year lows in the hydropower-reliant region.

The Nordic front-quarter baseload power contract NSBLQc1 was up 2.10 euros, or 3.7%, to 59 euros per megawatt hour (MWh) at 11:15 GMT, its highest level since March 19.

The Nordic front-year power contract NSBLYc1 added 0.7 euros, or 1.5%, to 48.25 euros per MWh, a five-week high.

Early signs on Monday appeared bullish, analysts at Mind Energy said in a note, adding that weather forecasts remain rather dry and the hydrological deficit only appears to widen in the next two weeks.

Nordic water reserves PCAEC00 were at 33.33 terawatt hours (TWh) below normal on Monday. Water reserves hit their lowest level since late July 2018 at 35.16 TWh below normal on Sunday.

"The currently present unsettled and cool weather pattern over northern Europe will likely be replaced by a moderately warm and less active scenario in the second half of the month due to widespread rising pressure over northern Europe," said LSEG meteorologist Georg Mueller.

Dutch and British gas contracts climbed after another attempt to end the U.S.-Israel war on Iran failed even as the first Qatari liquefied natural gas (LNG) tanker sailed through the Strait of Hormuz. NG/EU

Power prices for Germany's year-ahead contract TRDEBYc1, Europe's benchmark, were up 0.72 euro, or 0.8%, at 91 euros per MWh.

The European carbon market's benchmark contract CFI2Zc1 lost 0.9 euro, or 1.2%, to 76.04 euros a metric ton.