EUROPE POWER-German forward power prices hit new 11-year lows

* Cal '16 prices below 32 euros/MWh on weak fuels, warm weather

* EEX Year Ahead hits lowest level since April 2004

* Spot up, demand recovering after German holiday

PARIS, Jan 6 (Reuters) - European power forward prices sagged to levels not seen since 2004 on Tuesday, with analysts and traders bracing for another year of above-average temperatures, low electricity demand and oversupply.

Germany's Cal' 16 baseload position, the benchmark for European electricity prices for delivery next year, lost 20 cents in morning trade to 31.65 euros ($38) per megawatt hour marking new contract low, Thomson Reuters data showed.

The year-ahead contract on the EEX bourse, at 31.61 euros, was the lowest for that position since April 2004.

The equivalent French contract in the OTC market was down 75 cents to 38.55 euros per MWh, also at contract lows.

A mild start to the winter in western Europe rounded up one of the warmest years on record and power traders are realising that a cold winter is unlikely.

In Germany, 2014 was the warmest year since regular measurements started in the 19th century, commodities broker Marex Spectron said in a research report.