Nordic Power: Front-quarter tracks European gains, wetter outlook pressures front-year

INTER RAO Lietuva AB

18/05/2022 15:43

May 18 (Reuters) - Nordic front-quarter power edged up on
Wednesday on higher gains in wider European markets due to
worries over gas supply disruptions, while the front-year
contract slipped on forecasts of wetter weather. 
    * Nordic front-quarter baseload power contract  ENOFBLQc1  
rose
1.35 euro to 89.10 euros per megawatt hour (MWh) at 1436 GMT.
    * The Nordic front-year contract  ENOFBLYc1  lost 0.25 euro
to
75.75 euros/MWh. 
    * "It's a bit mixed market," said Lene Hagen, an analyst at
Volue
Insight, with uncertainities in fuel and the wider European
markets keeping the prices relatively elevated.
    * But wetter weather outlook from the end of May and higher
temperature that could increase inflow of water into reservoirs,
are weighing on Nordic prices, she added.
    * European forward-curve power prices rose on Wednesday as
related
fuels posted gains over potential supply uncertainty after the
European Commission said opening rouble accounts at a Russian
bank to pay for gas would breach sanctions against Moscow.
 NG/EUO/R  EL/DE 
    * However, German baseload for 2023 delivery  TRDEBYZ3 ,
Europe's
benchmark contract, fell 3 euros to 229.00 euros/MWh.
    * Nordic water reserves available 15 days ahead  PCAEC00 
were
seen at 6.73 terawatt hours (TWh) below normal, up from 8.91
terawatt hours (TWh) below normal on Monday.
    * "The second half of this week and the entire next week
will be
cloudy with increasing precipitation activity," said Refinitiv
meteorologist Georg Muller, adding it would be windy, with rain
amounts and the temperatures near or slightly above normal.
    * Carbon front-year allowances  CFI2Zc1  eased 6.51 euros to
85.21
euros a tonne.
    * The Nordic power price for next-day physical delivery
 FXSYSAL=NPX , or system price, rose 29.69 euros to 181.82
euros/MWh at an auction on the Nord Pool exchange.



 (Reporting by Roshan Abraham in Bengaluru; Editing by Krishna
Chandra Eluri)
 ((Roshan.Abraham@thomsonreuters.com;))