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NORDIC POWER-Prompt sideways, year-ahead down on oil
July 2, 2012 / 11:01 AM / 5 years ago

NORDIC POWER-Prompt sideways, year-ahead down on oil

* Benchmark prices moving sideways
    * System price up on less wind output

    OSLO, July 2 (Reuters) - Nordic benchmark power prices
headed sideways on Monday morning, while spot prices were
expected to rise on lower wind power output, analysts said.
    The quarter-ahead contract for baseload (24 hours)
delivery was trading at 39.49 euros ($50.11) per megawatt-hour
(MWh) at 1000 GMT, almost unchanged from Friday.
    Georg Muller, meteorologist at Point Carbon, said there
would be some warmer and drier days this week before conditions
became more unsettled and cooler again.
    The Nordic region relies on hydro power for more than 50
percent of its electricity generation, and drier weather is a
bullish price signal.
    But traders said liquidity in the Nordic power market was
low as many market participants were on summer vacation.
    Further down the curve, Nordic power prices for baseload
delivery in 2013 were trading at 38.30 euros per MWh,
down by 10 cents, following the fall in oil price.
    "The year-ahead contract was down on weaker oil and coal
prices," one trader said.
    North Sea Brent crude oil fell more than $2 per
barrel on Monday to an intra-day low of $95.58. 
    Oil slipped after factory data in Europe and Asia pointed to
a sharp slowdown in global economic activity and lower fuel
demand.
    
    SYSTEM PRICE
    Nordic system price came in at 25.1 euros per MWh for
Tuesday delivery, slightly higher than 24.8 euros for Monday, as
less wind power output was expected, an analyst at Point Carbon
said.
    This was partly outweighed by lower exports to Germany, he
added.
    The wind power output in Denmark and Sweden was to drop by  
1,180 MW to 320 MW on Tuesday, according to Hirlam forecast.
($1 = 0.7880 euros)

 (Reporting by Nerijus Adomaitis; editing by James Jukwey)

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