Reuters logo
NORDIC POWER-Spot price seen up on cooler weather
July 25, 2012 / 10:04 AM / 5 years ago

NORDIC POWER-Spot price seen up on cooler weather

 * Forward power contracts trade flat on lack of news
 * Traders await EC decision on carbon market curbs
 OSLO, July 25 (Reuters) - Nordic spot power prices are
expected to firm on higher consumption as temperatures drop and
exports to continental Europe rise, analysts said on Wednesday.
 The day-ahead spot price, to be set later on Wednesday, was
expected to rise to 8.4 euros per megawatt-hour (MWh) for
Thursday delivery, from 7.9 euros the previous day.
 "Cooler weather and higher consumption in combination with
an expected increase in exports to the continent is slightly
offset by an increase in wind power output," an analyst at
Thomson Reuters Point Carbon said.
 Temperatures were forecast to drop about 1.3 degrees
Celsius, while consumption was seen rising by 400 MW to 34,100
MW on Thursday. 
 
 FORWARD PRICES
 Further out on the curve, prices were almost unchanged
during thin, summer trading.
 The benchmark quarter-ahead contract for baseload
(24 hours) delivery was flat at 36.50 euros ($44.11) per MWh at
0845 GMT.
 "There is not much news to trade today. The weather looks
the same, while the oil and carbon prices have provided little
support," a Norway-based trader said.
 Brent crude traded at $103.60 a barrel on Wednesday
morning, also flat from Tuesday. 
 The Nordic contract for baseload power delivery in 2013
 eased by 10 euro cents to 36.75 euros a MWh.
 The equivalent German contract was unchanged at
47.75 euros ($58) a megawatt hour in the OTC market, the lowest
since late June.
 Traders said the market was waiting for the European
Commission to publish a plan to bolster the Emissions Trading
Scheme (ETS) by reducing a massive burden of surplus allowances.
 
 "Carbon prices could jump briefly if the plan convincingly
cuts CO2 permit supplies," one trader said.
 The benchmark December 2012 carbon allowance contract traded
at around 7.3 euros on Wednesday morning, slightly up from
Tuesday.
($1 = 0.8275 euros)

 (Reporting by Nerijus Adomaitis; Editing by Alison Birrane)
 

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below