NORDIC POWER-Spot seen up on lower supply from wind, nuclear
* Nordic spot price for Wed seen at 36.4 euros/MWh
* Oskarshamn-2 reactor to go offline for upgrade
OSLO, Oct 9 (Reuters) - Nordic spot power prices were expected to rise as a forecast drop in expected wind and a temporary halt at a Swedish nuclear power plant shifts the focus to coal power production, analysts at Point Carbon said on Tuesday.
The Nordic average day-ahead power price
Tuesday delivery was seen firming to 36.4 euros per megawatt-hour (MWh), compared with 33.5 euros on Monday.
"With the spot price approaching marginal costs of coal power production, we will see more output from coal power plants," a Point Carbon analyst said.
Point Carbon estimated short-run marginal cost (SRMC) of coal power production was expected to be 36.7 euros a MWh in November.
Combined windpower output in Denmark and Sweden was forecast to fall from around 3,000 MW on Tuesday to 1,600 MW on Wednesday, while colder weather was to boost consumption by 850 MW to 44,200 MW.
Nordic power production would be reduced on Wednesday as Sweden's 996 MW Forsmark-2 reactor is to go offline to make technical adjustments needed for upgrading its capacity.
The contract for baseload (24 hours) power delivery in the first quarter
rose by 45 cents to 43.25 euros per MWh by 0900 GMT, compared with Monday's close as weather forecasts confirmed outlook for drier weather.
The latest weather forecasts for the next 15 days showed precipitation levels in Norway and Sweden to be 3,276 MW below normal levels.
"The contract rose on the back of the drier weather forecasts. That's the main factor," an Oslo-based trader said.
He added he saw the price resistance levels at around 44 euros.
The Nordic region relies on hydroelectric power for more than 50 percent of its power generation, and change in precipitation is an important factor in setting prices.
The Nordic contract for baseload power delivery next year
was up by 15 cents to 38.35 euros per MWh.
Coal API2 2013 futures traded lower by 10 cents to $97.25 a tonne, while European carbon prices
unchanged at 7.92 euros a tonne.
Brent crude futures rose towards $113 a barrel on Tuesday, due to fears that escalating tensions in the Middle East cut supply.
Elsewhere, Saudi Arabia, OPEC's biggest oil producer, said on Tuesday oil prices have come down to suitable levels for consumers and producing countries.
Brent crude has fallen from a high for the year of $128 a barrel in March.
(Reporting by Nerijus Adomaitis; Editing by Mike Nesbit)
Keywords: MARKETS NORDIC/ELECTRICITY