Nordic electricity for April traded close to the highest in six weeks after weather forecasters maintained temperature and precipitation predictions for the coming weeks.
The April contract closed at 38.80 euros ($50.42) a megawatt-hour after rising to 39 euros on Nasdaq OMX Group Inc.’s energy exchange in Oslo. The benchmark Nordic next- quarter contract was unchanged at 37.10 euros. Today’s intraday highs for both contracts matched those for yesterday and were the most since Jan. 18.
“Weather forecasts are mixed, offering no firm signals to trade on, resulting in small price adjustments of 5 to 20 euro cents,” Svein Nyland, head of analysis at SKM Market Predictor, said by phone from Trondheim, Norway.
Temperatures in Sweden may average minus 0.2 degrees Celsius (31 Fahrenheit) through March 11, compared with an earlier forecast of minus 0.1, MetraWeather data on Bloomberg using the ECMWF model show.
The Nordic region gets more than half of its power from hydroelectric plants. The amount of water and snow available to generate electricity in the region may be 15.3 terawatt-hours below normal for the time of year in two weeks, up from 15.9 terawatt-hours today, Markedskraft data on Bloomberg show. Wetter weather signals more supply and points to lower prices.
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