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 wereexpected to rise as a forecast drop in expected wind and atemporary halt at a Swedish nuclear power plant shifts the focusto coal power production, analysts at Point Carbon said onTuesday.
The Nordic average day-ahead power price
for
Tuesday delivery was seen firming to 36.4 euros permegawatt-hour (MWh), compared with 33.5 euros on Monday.
"With the spot price approaching marginal costs of coalpower production, we will see more output from coal powerplants," a Point Carbon analyst said.
Point Carbon estimated short-run marginal cost (SRMC) ofcoal power production was expected to be 36.7 euros a MWh inNovember.
Combined windpower output in Denmark and Sweden was forecastto fall from around 3,000 MW on Tuesday to 1,600 MW onWednesday, while colder weather was to boost consumption by 850MW to 44,200 MW.
Nordic power production would be reduced on Wednesday asSweden's 996 MW Forsmark-2 reactor is to go offline to maketechnical adjustments needed for upgrading itscapacity.
FORWARD PRICES
The contract for baseload (24 hours) power delivery in thefirst quarter
rose by 45 cents to 43.25 euros per MWhby 0900 GMT, compared with Monday's close as weather forecastsconfirmed outlook for drier weather.
The latest weather forecasts for the next 15 days showedprecipitation levels in Norway and Sweden to be 3,276 MW belownormal levels.
"The contract rose on the back of the drier weatherforecasts. That's the main factor," an Oslo-based trader said.
He added he saw the price resistance levels at around 44euros.
The Nordic region relies on hydroelectric power for morethan 50 percent of its power generation, and change inprecipitation 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 futurestraded lower by 10 centsto $97.25 a tonne, while European carbon prices
were
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 cutsupply.
Elsewhere, Saudi Arabia, OPEC's biggest oil producer, saidon Tuesday oil prices have come down to suitable levels forconsumers and producing countries.
Brent crude has fallen from a high for the year of $128 abarrel in March.
(Reporting by Nerijus Adomaitis; Editing by Mike Nesbit)
((nerijus.adomaitis@thomsonreuters.com)(+47 9027 6699 ReutersMessaging: nerijus.adomaitis.thomsonreuters@reuters.net))
Keywords: MARKETS NORDIC/ELECTRICITY