NORDIC POWER-Forward prices slip to near two-week lows as gas prices ease

By Reuters News

Sept 22 (Reuters) - Nordic forward power prices fell to near a two-week low on Tuesday, pressured by lower gas prices, an improvement in the hydrological balance, and weakness in the German power market.

  • Nordic front-quarter baseload power contract was down €6.84, or 6.3%, to €101.65 per megawatt hour (MWh) at 1005 GMT, after hitting its lowest level since September 7 earlier.

  • Nordic front-year contract was down €2.05, or 3.08%, to €64.5 MWh, after falling to its lowest level since September 8 earlier.

  • "Nordic power prices have been pressured by lower gas prices and wetter weather forecasts, which have strengthened the hydrological balance," StormGeo Chief Analyst Sigbjørn Seland said.

  • "The situation is largely driven by extremely volatile gas prices," Seland added.

  • Nordic water reserves available 15 days ahead were seen at 10.93 terawatt hours (TWh) below normal, compared with 11.60 TWh below normal on Monday.

  • Benchmark Dutch and British wholesale gas prices were largely stable after a heavy selloff the previous day, as the market watches for any signs of diplomatic efforts at a UN meeting this week that could help reopen the Strait of Hormuz.

  • Germany's year-ahead power , Europe's benchmark contract, fell €4.85, or 3.8%, to €122.65 per MWh.

  • In the European carbon market, the benchmark contract fell €0.98, or 1.13%, to €85.61 a ton.

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