September 30, 2016 / 9:12 AM / 3 years ago

EUROPE POWER-German forward prices higher, while coal and oil weaken

* French nuclear factor behind 2-day rally still weighs

* Coal, oil prices slip, carbon up

* Spot mixed ahead of German holiday on Oct 3

FRANKFURT, Sept 30 (Reuters) - Benchmark European forward electricity recouped some of the ground lost late on Thursday which had dented a recent rally.

The rise to levels not seen in more than year was driven by a report saying France might extend routine nuclear outages for additional checks, which threatens to tighten supply in the region as winter approaches.

This factor was still working its way through market prices, traders said on Friday.

“There is more buying from France again ahead of the weekend,” a German trader said.

German markets will be closed on Oct 3 for unification day celebrations.

The German benchmark Cal’17 year-ahead baseload contract was at 29.65 euros ($33.17)/MWh a megawatt hour (MWh), up 20 cents from the previous close.

While markedly down from the 30.5 euros intraday high on Thursday, it is still a level last seen a year ago.

The less liquid equivalent French contract increased by 15 cents to 38.6 euros/MWh, having rallied to 39.5 euros on Thursday.

Coal, which accounts for more than 40 percent of German generation, was slightly off by 0.2 percent at $64.85 a tonne for prices into Europe in 2017.

This level, still the highest since mid-February 2015, reflects the renewed power market strength and global demand.

Front-year EU carbon allowances were 1.4 percent up at 5.09 euros a tonne.

Crude oil dropped as investors took profits following a 7-percent rise in the last two sessions, amid doubts that planned OPEC cuts will make a substantial dent.

Spot power was mixed for the coming days.

Germany’s Monday price was down, reflecting the holiday and higher wind output, with Tuesday’s rose on cooler weather forecasts.

The French Monday price was up on lighter renewable supply that day, prior to anticipated thermal plant additions.

German Monday baseload was at 27.8 euros and Tuesday at 34.5, compared with 34 euros paid for Friday.

The French contract for Monday rose 3.75 euros over what was paid for Friday to 44 euros.

Thomson Reuters data showed German average daily temperatures will be 6 degrees Celsius down next week from Friday’s level and those in France will shed 3 degrees.

In eastern Europe, the Czech year-ahead 2017 contract , which had risen in line with Germany, was untraded, having closed at 30 euros/MWh.

Czech Monday power was also untraded, but at 39 euros/MWh, it stood 4 euros above the previous close. ($1 = 0.8939 euros) (Reporting by Vera Eckert; Editing by Alexander Smith)

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