European gas prices jump to highest level in a year

European natural gas prices jumped to their highest level since November 2023 after Austria’s OMV warned of a potential disruption to Russian pipeline supplies as cold weather drives up demand for heating and electricity.

Austrian energy company OMV said it plans to stop paying for Russian gas purchases to Gazprom in order to recover 230 million euros (about $242 million) in damages it won in an arbitration case, raising the possibility that Gazprom could cut gas flows if it is not paid.

At the same time, OMV said it could deliver the full contracted volumes of gas to its customers in the event of any potential supply disruption by Gazprom. In addition, OMV’s gas storage facilities in Austria are currently more than 90% full.