Nov. 14 (Bloomberg) -- Nordic power for January through March declined as wetter conditions were predicted in the hydropower-dependent region.
Electricity for delivery in the next quarter fell 1.1 percent to 40.60 euros ($51.72) a megawatt-hour as of 2:45 p.m on Nasdaq OMX Group Inc.’s energy exchange in Oslo. Power for December traded at 38.80 euros, down 0.8 percent, after falling as low as 38.75 euros.
Weather forecasts showed more rain than earlier today, with the surplus compared with the seasonal average set to rise by 11 percent to 9.65 terawatt-hours in the next week, Markedskraft AS data on Bloomberg show. The Nordic region meets more than half its power needs by running water through turbines. Norway’s water reservoirs were 85.5 percent full on Nov. 11, 1.1 percentage points above normal, the country’s water and energy directorate said today.
“The market is fundamentally overvalued,” Coeli AB, the Stockholm-based hedge fund manager in charge of the Power Surge fund, said today in an e-mailed report. “The hydrological surplus remains large.”
The benchmark near-quarter and the April-June contracts may fall further, “but not too much,” amid abundant supplies of hydropower and nuclear output, Bixia AB, Sweden’s fourth-largest power trading company said today in a report. The second-quarter contract fell 1.1 percent to 34.30 euros.
The contract for 2013 delivery, which last traded at 37.30 euros, down 1.1 percent from yesterday, may slide as low as 36 euros as a result of the weak economic outlook in debt-ridden European economies, the company said.
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