Sept 21 (Reuters) - Nordic front-quarter power prices inched lower on Friday and held close to a three-month low touched in the previous session, as forecasts pointed to wetter weather while water reserves improved in the region.
* Nordic front-quarter baseload power contract fell 0.25 euro to 44.20 euros per megawatt hour (MWh) at 1313 GMT. The contract lost 10 percent this week, falling for a third straight week.
* Nordic front-year gained 0.2 euro to 37.95 euros/MWh.
* The market is nervous because prices have fallen a lot this last 6-7 days, said Arne Osterlind, portfolio manager for Shepherd Energy in Sweden.
* The front quarter hit a three month low on Thursday at 43.00 euros per MWh, weighed down by an outlook for wetter weather in the hydro-power dependent region
* Nordic water reserves available 15 days ahead were seen at 5.3 terawatt hours (TWh) below normal, against 5.4 TWh below normal on Thursday.
* “The weekend and next week will be generally cloudy with showers or rain especially in western Norway while the south and east of Scandinavia will be partially dry with brief sunny intervals,” said Georg Muller, a meteorologist at Thomson Reuters.
* The Nordic power price for next-day physical delivery , or system price, fell 16.01 euro to 20.93 euros per MWh at an auction on the Nord Pool exchange.
* Spot prices are weak as there is a lot of wind power production and inflow of rainfall, Osterlind added.
* In the financial market, the day-ahead contract was last traded at 23.75 euros per megawatt hour (MWh).
* European next-year coal prices rose $0.5 to $98.50 a tonne.
* Carbon front-year allowances eased 0.23 euro to 21.80 euro a tonne.
Thomson Reuters analyst view: here (Reporting by Sumita Layek in Bengaluru; Editing by Elaine Hardcastle)