Central European Spot Prices Ease

Central European power prices fell on Tuesday, with prospects for lower temperatures seen cutting demand for air conditioning and stronger winds boosting output from windfarms, traders said.

Day-ahead prices fell 1.7 percent to 34.50 euros ($47.06) in the Czech Republic and declined 4.4 percent to 43.50 euros in Hungary in over-the-counter trade.

Data from Thomson Reuters Point Carbon showed forecasts for wind generation in Germany rising nearly 3 gigawatts to 7.3 GW for Wednesday, with solar production at 3.1 GW.

Further along the curve, the Czech front-month contract fell 5 cents to 30.65 euros and Hungarian electricity for August declined 75 cents to 44.85 euros.

On the Prague-based Power Exchange, the Czech front-year contract held steady at 33.65 euros and the Hungarian Cal '15 shed 5 cents to 42.95 euros in afternoon trade.

Around the region, the benchmark German Cal '15 gained 8 cents to 34.39 euros on Germany's EEX exchange in afternoon trade. Day-ahead on Poland's POLPX exchange fell to 170.84 zlotys ($56.22) from 190.25 zlotys.

Central and southeast Europe could face higher gas prices and potential shortages this winter, as a prolonged price row between Russia and Ukraine heightens regional supply fears.

Serbia's water levels are forecast to stay unchanged through July 15, the hydrometeorological service said in a weekly forecast.

A Slovak pipeline able to carry gas from the European Union into Ukraine has been booked to ship 10 billion cubic metres annually until 2019, representing nearly 20 percent of Ukraine's yearly demand.

Brent crude fell to a fresh one-month low beneath $110 a barrel, as prospects for a rise in Libyan oil exports improved and fears of supply disruption in Iraq eased.

European Union carbon futures surged nearly 4 percent to 5.79 euros in afternoon trading.

($1 = 0.7331 Euros) ($1 = 3.0387 Polish Zlotys)

(Reporting by Michael Kahn; Editing by David Holmes)