• NORDIC POWER-Forwards head for weekly loss on higher forecast for water reserves
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NORDIC POWER-Forwards head for weekly loss on higher forecast for water reserves

Sept 23 (Reuters) - Nordic forward power prices declined in low-volume trade on Friday and were headed for a weekly loss on falling German power rates and forecasts for wetter weather in the hydro-dependent region.

* Nordic front-quarter baseload power contract fell 16.5 euros to 269.00 euros per megawatt hour (MWh) at 12:21 GMT. The contract is headed for a weekly loss of about 3.6%.

* The Nordic front-year contract lost 7.48 euros to 167.65 euros/MWh. The contract is headed for a weekly loss of about 1.4%.

* "Continued lower German power and expectations of stronger hydrological development" are factors easing the Nordic forward contracts, said Sigbjorn Seland, chief analyst at StormGeo Nena Analysis in Oslo.

 
* "NASDAQ futures market has lost relevance with the lack of correlation between the system price and the area price," said Seland, adding that due to high volatility in the market and the correlation factor, the Nordic forwards market was currently seeing low trade volumes.

* Nordic water reserves available 15 days ahead were seen at 12.69 terawatt hours (TWh) below normal, up from 13.62 TWh below normal on Thursday.

* The weather would be unsettled, with near or above normal rain and seasonable temperatures, said George Muller, a meteorologist at Refinitiv in a daily note.

* The Nordic power price for next-day physical delivery , or system price, rose 7.12 euros to 235.36 euros/MWh at an auction on the Nord Pool exchange. The system prices recorded a weekly gain of 252%, the most in about one and a half year.

* "The level of the wind power production is the main creator of spots price volatility," Seland said.

* British and Dutch wholesale gas prices edged lower amid higher wind output forecasts for next week and lower-than-expected consumption in northwest Europe.

* German baseload for 2023 delivery, Europe's benchmark contract, fell 42 euros to 482.00 euros/MWh. (Reporting by Harshit Verma in Bengaluru; Editing by Anil D'Silva)

This article was first published by Yahoo Finance on September 23, 2022