NORDIC POWER-Front-quarter prices set for second weekly gain on higher gas rates

By Reuters News

Oct 23 (Reuters) - Nordic front-quarter power prices rose on Friday and were set for a second successive weekly gain, supported by surging European gas prices and concerns about tighter fuel supply linked to Middle East disruptions.

  • Nordic front-quarter baseload power contract rose €3.27 ($3.66), or 2.69%, to €124.70 per megawatt hour (MWh) at 1004 GMT, after climbing to its highest level since December 2022 earlier in the session

  • "Gas prices have surged to near four-year highs on TTF on supply concerns, pulling German and Nordic power up with them," said Lukas Sigg, CEO of Nordic Energy Consulting

  • Benchmark Dutch and British gas prices rose on Friday as renewed Houthi attacks on Saudi Arabia and shipping exacerbated fears that Middle Eastern LNG exports could remain severely disrupted for an extended period NG/EU

  • Before US-Israeli attacks on Iran began in late February, the Strait of Hormuz handled about one-fifth of global oil and liquefied natural gas supplies

  • On the weather front, "strong Atlantic low-pressure activity will dominate the weather over the weekend and early next week with wetter and windier-than-normal conditions. Temperatures will be near or slightly above normal," said LSEG meteorologist Georg Mueller

  • "Weather forecasts have turned slightly drier toward end of October, which is modestly bullish for a region as dependent on hydropower as the Nordics," Sigg said

  • Nordic water reserves available 15 days ahead were 6.4 terawatt hours (TWh) below normal on Friday, compared with 7.13 TWh below normal on Thursday

  • Germany's year-ahead power-contract , Europe's benchmark contract, rose €4.83, or 3.25%, to €153.53 per MWh

  • In the European carbon market, the benchmark contract fell €0.50, or 0.58%, to €85.94 a ton

($1 = 0.8930 euros)

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