Front-quarter hits more than 6-month peak as water levels decline
July 26 (Reuters) -Nordic front-quarter power prices hit a more than six-month high on Friday, led by water levels extending their decline in the hydropower-dependent region.
* The Nordic front-quarter contract ENOFBLQc1 gained 1 euro to 48.5 euros per megawatt hour (MWh) at 1021 GMT after hitting the highest since early January.
* Both the front-year ENOFBLYc1 and front-quarter contracts were headed for weekly gains.
* Nordic water reserves available 15 days ahead PCAEC00 were seen at 8.42 terawatt hours (TWh) below normal, compared with 6.53 TWh below normal on Thursday.
* "The market responds bullishly to drier weather forecasts for the coming weeks, with expectations of lower wind output as well," analysts at Energi Danmark said in a daily note.
* "We could see the development continue as the dry forecasts are confirmed, and gas, German power also appear to rise modestly," the analysts said.
* Germany's Cal'25 baseload TRDEBYc1, Europe's benchmark contract, added 0.96 euro to 89.86 euros/MWh.
* Carbon front-year allowances CFI2Zc1 gained 0.58 euro to 67.39 euros a tonne.
* Warmer than normal weather, accompanied by partially slightly unsettled weather, especially towards the west and northwest of Europe is expected, 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 3.02 euros or 10.5% to 25.79 euros per megawatt hour (MWh).
Reporting by Rahul Paswan in Bengaluru; Editing by Mrigank Dhaniwala
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