Front quarter prices slip on wetter weather view
Dec 12 (Reuters) -Nordic front-quarter power prices fell on Thursday as forecasts pointed to wetter and warmer weather in hydropower-reliant regions, while an uptick in water reserves also pressured prices.
* Nordic front-quarter baseload power contract ENOFBLQc1 fell 0.85 euros or 1.71% to 48.95 euros per megawatt hour (MWh)as of 1030 GMT.
* Nordic water reserves available 15 days ahead PCAEC00 were seen at 16.1 terawatt hours (TWh) above normal, compared with 15.39 TWh above normal on Wednesday.
* "The main point of interest these days is that the weather forecasts look quite wet leading up to Christmas, and the already quite big surplus on the hydro balance is expected to continue to grow. Temperatures are also expected to rise next week," said Karsten Sander Nielsen, a senior market analyst at Energi Danmark.
"It adds to the downside that the German power prices have also been falling."
* European prompt power prices fell, with wind power supply forecast to rise in Germany and demand set to fall. EL/DE
* Dutch and British wholesale gas prices were lower on profit taking, milder weather expectations and healthy supply. NG/EU
* In the European carbon market, the benchmark contract CFI2Zc1 inched down by 0.43 euro to 68.20 euros per metric ton.
* "The second half of December will quite certainly be milder and often wetter than normal with brief colder than normal episodes only," Georg Muller, a meteorologist at LSEG, said in a note.
* The Nordic power price for next-day physical delivery FXSYSAL=NPX, or system price, rose 44.34 euros or 106.87% to 85.83 euros per MWh.
Reporting by Anjana Anil in Bengaluru; Editing by Tasim Zahid
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
