Forward prices edge up on chances of marginally drier weather
Dec 19 (Reuters) -Nordic forward power prices rose on Thursday on new forecasts suggesting drier weatherand positive sentiment in related markets, but gains were expected to be short-lived as overall outlook still indicateswetter conditions and rising water reserves.
* Nordic front-quarter baseload power contract ENOFBLQc1 rose 0.52 euros or 1.1% to 48.2 euros per megawatt hour (MWh) as of 1115 GMT.
* Nordic front-year ENOFBLYc1 gained 0.1 euros or 0.3% to 32.1 euros per MWh.
* "Temperatures are expected to remain above average the entire period until New Year, and precipitation amounts and wind output should also remain above normal. The hydro balance surplus continues to grow and the outlook is still bearish for the Nordic power market," analysts at Energi Danmark said in a note.
* However, "the forecasts looked marginally drier than they did the day before...Mild and wet forecasts are offset by rising prices on the related markets."
* Nordic water reserves available 15 days ahead PCAEC00 were seen at 22.25 terawatt hours (TWh) above normal, compared with 20.9 TWh above normal on Wednesday.
* European prompt power prices rose as main wind power producer Germany is expected to see a sharp fall in wind generation output and French nuclear availability dropped sharply. EL/DE
* Dutch and British wholesale gas prices were largely range-bound amid colder weather and stablesupply NG/EU
* In the European carbon market, the benchmark contract CFI2Zc1 was up 0.41 euro at 65.27 euros a metric ton.
* The weather is "generally unsettled and quite mild with near or above normal rain and temperatures through the next two weeks," Georg Muller, a meteorologist at LSEG, said in a note.
* The Nordic power price for next-day physical delivery FXSYSAL=NPX, or system price, fell 4.04 euros to 20.08 euros per MWh.
Reporting by Anjana Anil in Bengaluru
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