By The Telegraph (Business) | Created at 2024-11-14 07:35:50 | Updated at 2024-11-22 12:54:51
1 week ago
Gas prices surged to their highest level in a year after a warning about a reduction in supplies from Russia.
Dutch front-month futures - the benchmark contract used in Europe - rose as much as 5.4pc to after the intervention by Austrian energy group OMV.
Gas prices breached €46 per megawatt hour for the first time since November last year after the company received an award for €230m (£191m) from Russian oil and gas supplier Gazprom this week.
OMV said it will immediately seek to recover the settlement - awarded after it received “irregular” gas supplies in 2022 - by off-setting claims against invoices under Austria’s long-term gas supply contract.
It warned that this may hurt contractual relations with Kremlin-backed Gazprom and potentially lead to a halt of supplies.
Europe has become susceptible to swings in supply levels on the global gas market after pipeline supplies were largely switched off by Russia following Vladimir Putin’s decision to invade Ukraine.
Read the latest updates below.
