Front-quarter rates extend losses on weaker German, carbon markets

Nordic front-quarter power prices slipped for the second straight session on Monday, weighed down by declining carbon and German power rates, while lower water reserves restricted further downward movement.

* The Nordic front-quarter contract (ENOFBLQc1) fell 0.6 euros to 28.75 per megawatt-hour (MWh) by 1019 GMT.

* The Nordic front-year baseload power contract (ENOFBLYc1) gained 0.05 euros to 43 euros/MWh.

* "It's mainly lower gas and carbon prices that are pushing down Nordic prices for front quarter today," analysts at Energi Danmark said in a daily note.

* Dutch and British wholesale gas prices fell as demand-sapping warmer weather outweighed the impact of Norwegian outages while there was an easing in concern over wider supply risks that buoyed prices last week.

* Carbon front-year allowances (CFI2Zc1) were down by 1.61 euro at 65.31 euros a tonne.

* Germany's Cal '25 baseload (TRDEBYc1), Europe's benchmark contract, shed 2.25 euros to 85.75 euros/MWh.

* Nordic water reserves available 15 days ahead (PCAEC00) were seen at 10.65 terawatt hours (TWh) below normal, marking its lowest level in the month, compared with 8.57 TWh below normal on Friday.

* Meanwhile, "high pressure over the continent will extend into Northern Europe and will bring a warm and dry episode especially to the southern parts," Georg Muller, a meteorologist at LSEG said in a forecast note.