* Nordic July power prices at lowest since 2007 * Drop follows oil price drop below $100, rising hydro levels * UK gas prices also down sharply By Nerijus Adomaitis OSLO, June 1 (Reuters) - Key Nordic forward power prices dropped to their lowest levels in several years on Friday, dragged down by oil and fears over the European economy. Month-ahead baseload (24 hours) prices slumped over two euros to 23.50 euros per megawatt-hour from 25.7 since Thursday, the lowest mark since the third-quarter of 2007. Year-ahead prices dropped almost half a euro to 36.35 euros per MWh, the lowest since a brief time in December, and before that since late 2009. Front-month Brent crude oil prices fell below $100 per barrel on Friday for the first time since October 2011. Traders said that weather conditions in the Nordic market also weighed on prices. "It's a continuous fall on wet and gradually milder weather forecast, and it is difficult to say where it (the drop) is going to stop," a utility trader in Oslo said. Nordic power generation relies to around 50 percent on hydro reserves so the immediate weather forecasts effect prices further down the price curve. Other energy prices in Europe also fell on Friday. Like oil, API2 2013 coal futures prices also fell below $100 a tonne, their lowest level since the second quarter of 2009. Benchmark UK gas prices for delivery next winter fell to 64.75 pence a therm, their lowest level since January. (Additional reporting by Henning Gloystein; Editing by Hans-Juergen Peters)

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