NORDIC POWER-Forward rates edge up on low water reserves

May 13 (Reuters) - Nordic forward power contracts rose on Wednesday as water reserves in the hydropower-reliant region dipped, though lower European gas prices capped further gains.

The Nordic front-quarter baseload power contract NSBLQc1 rose 0.4 euros, or 0.7%, to 60.1 euros per megawatt hour (MWh) at 10:39 GMT.

The Nordic front-year power contract NSBLYc1 gained 0.2 euros, or 0.4%, at 49.30 euros per MWh.

"The main support today is still the weak hydro situation. Even if weather forecasts have turned wetter, the market remains cautious about pricing out a still significant hydrological deficit," said Lukas Sigg, CEO of Nordic Energy Consulting.

Nordic water reserves PCAEC00 were 34.43 terawatt hours (TWh) below normal on Wednesday, falling from 32.96 TWh below normal on Tuesday. Water reserves hit their lowest level since late July 2018 at 35.16 TWh below normal on Sunday.

"At the same time, weaker European gas is likely capping gains, as softer continental energy prices would normally pressure Nordic forwards," he added.

Dutch and British natural gas prices edged lower after a few shipments were flagged to pass via the Strait of Hormuz and ahead of a highly anticipated visit by U.S. President Donald Trump to China, though Trump said he does not expect to need Beijing's help to end the Middle East conflict. NG/EU

"The general weather pattern will change toward next week due to rising pressure over the continent and northern Europe. Until then, the current low-pressure situation will prevail with cooler and wetter-than-normal conditions," said LSEG meteorologist Georg Mueller.

Germany's year-ahead power contract, Europe's benchmark, fell 1.25 euros, or 1.4%, to 91.5 euros/MWh.

The European carbon market's benchmark contract CFI2Zc1 lost 1.64 euros, or 2.2%, at 74.17 euros a metric ton.