Lower French Nuclear Output: Europe Power-Forwards firm with higher oil prices

    * French nuclear power capacity lower than expected
    * EDF's 900-MW Gravelines 4 reactor in unplanned outage

    FRANKFURT/PARIS, May 22 (Reuters) - European power forwards
edged higher on Tuesday on the back of a slight rise in oil
prices while lower-than-expected nuclear power capacity pushed
French spot prices slightly higher.     
    Spot prices in Germany eased due to increasing wind speeds
and higher temperatures.  
    The curve was hovering above last week's 18-month lows but
in low volume, reflecting operators' indecision as they weighed
different fuels scenarios, traders said. 
    "There is no strong push in either direction," one said. 
    Germany's Cal '13 baseload, the benchmark position for power
delivery next year, nudged up 10 cents to 48.85 euros a megawatt
hour (MWh). 
    The French contract rose 10 cents to 49.6 euros
per MWh. 
    Coal and gas, important power inputs, were weaker, while EU
carbon prices ticked higher. 
    Oil rose slightly to $109 per barrel, underperforming other
demand sensitive assets, as signs of a deal on Iran's nuclear
programme eased fears of oil supply disruptions.  
    German spot power prices were lower with Wednesday delivery
baseload shedding 10 cents on the day to 42.50 euros. 
    France's day-ahead contract edged 50 cents higher to 43.75
euros, as nuclear power capacity was lower than expected
this week. 
    EDF's 900-megawatt (MW) Gravelines 4 nuclear
reactor stopped for an unplanned outage on Tuesday, France's
power grid RTE said, without providing a reason or restart date. 
    Wind power was seen at 10 GW of capacity use for the next
two days, equivalent to a third of the installed total. 
    Observers of German energy industry policy will likely focus
on the upcoming meeting on Wednesday between heads of federal
states and Chancellor Angela Merkel on urgent energy strategy
issues.  
     The Berlin meeting is aimed at starting to clear up
financial, legal and technical uncertainties that have
undermined progress on a coherent plan, which Merkel now
indicates she will press for.

 

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