Nordic forward power rates were mixed on May 16, as weaker European gas prices countered a dip in water reserves and drier weather forecasts in the hydropower-dependent region.

The quarterly contract for June expiry edged up 0.25 euro to 52.75 euros per megawatt-hour (MWh) as of 1140 GMT.

The Nordic front-year contract, meanwhile, dropped 1.25 euros to 68.75 euros.

"Shorter contracts should perhaps rally due to more bullish weather but gas weakness overrules this at the moment," said Axel Weyler, a power trader at Entelios Trading.

The benchmark Dutch front-month contract fell to a fresh near 2-year low amid tepid demand and strong supply.

Meanwhile, Germany's Cal '24 baseload, Europe's benchmark power contract, dipped 6.15 euros to 135.00 euros/MWh.

"The second half of the week will be drier and sunnier, with temperatures rising to above normal values by the weekend," said Georg Muller, a meteorologist at Refinitiv, adding that "next week will be similarly warm."

Nordic water reserves available 15 days ahead were seen at 13.46 terawatt-hours (TWh) below normal, compared with 12.37 TWh below normal on May 15.

Carbon front-year allowances added 0.56 euro to 87.54 euros a tonne.