Nordic power forward prices gain on firmer related markets and Middle East jitters

Nordic forward power prices climbed on Thursday, tracking stronger European gas and German power markets. The front-quarter baseload contract added €2.05, or 1.87%, to €111.5 per MWh, and the front-year contract gained €0.9, or 1.34%, to €68.1.

Analysts at Mind Energy said drier weather forecasts and increases in related markets had driven the previous day's Nordic price gains, and considered further increases the most likely scenario as Middle East tensions spread across markets. Nordic water reserves available 15 days ahead were 6.34 TWh below normal, compared with 6.57 TWh below normal on Wednesday. LSEG meteorologist Georg Muller said a less active and drier pattern was hinted at toward the end of the following week and beyond, but uncertainty was high.

Dutch and British wholesale gas prices reached their highest in more than two weeks after tanker attacks around the Strait of Hormuz curbed hopes for more LNG shipments through the chokepoint. Germany's Cal '26 baseload contract gained €4.3, or 3.21%, to €138.4 per MWh, while front-year carbon allowances advanced €1.1, or 1.29%, to €86.35 a ton.