European prompt power prices fell on Friday and are expected to turn negative in the coming days due to a spike in wind power production at a time of low demand linked to mild temperatures, traders and analysts said on Friday. French day-ahead delivery baseload power was down 6.75 euros at 18.50 euros a megawatt hour by 1449 GMT, after hitting a low of 13.50 euros/MW/h. Germany's day-ahead closed at 18.50 euros/MW/h at midday, off an intraday high of 29 euros.

"The fundamentals are putting a significant bearish pressure on weekend prices and bullish signals are nowhere in sight," analysts at Thomson Reuters Point Carbon said, predicting the negative prices on Sunday, Monday and Tuesday, notably due to high wind power. They stressed however that the magnitude of the negative prices was difficult to gauge.

Forecasters see temperatures remaining well above the seasonal normal in most of Europe for the whole of next week. Point Carbon said wind power output in continental Europe was expected to be at 9,000 MWh/h and 14,700 MWh/h on Saturday and Sunday respectively. It was set to hit 19,000 MWh/h on Sunday evening.

Copyright Reuters, 2012