Iberia prompt power eases as stronger winds seen

* Spain day-ahead down 0.63 to 37.16 euros/MWh

* Portugal day-ahead falls 0.45 to 39.18 euros/MWh

MADRID, July 1 (Reuters) - Iberian prompt power declined for the second day in a row on Wednesday amidst renewed forecasts that supplies of cheap wind power would recover from very low levels, while a retreat by oil weakened futures contracts.

Spanish wind parks -- the world's third-largest -- were expected to generate up to 3,000 megawatts on Thursday, rising from 290 MW at midday on Wednesday, which was the equivalent of just 0.7 percent of demand.

Wind power has provided 43 percent of Spain's electricity and it sways the power market.

Brent crude LCOc1 was trading slightly lower than at around midday on Tuesday, at about $70.50 a barrel and this lowered prospective costs for oil and gas needed to drive half of Spain's generators.

Baseload calendar-year 2010 was reported changing hands at at 46.45 euros/MWh in early over-the-counter market deals, down some 0.55 from the latest price in the sporadic trade in the prior session.

Six of Spain's eight nuclear power stations were working normally and providing 5,242 MW between them, or 12.2 percent of demand, according to data from the CSN nuclear regulator and national grid operator REE (REE.MC).

The Asco I and Vandellos II plants were both refuelling. Each generates 1,000 MW when running normally. (Reporting by Martin Roberts, editing by Anthony Barker)