Europe’s gas labelet rose by as much as 5% on Thursday to its highest price in a year after one of the continent’s biggest gas traders shelp that there could be a stop on gas supplies from Russia.
Austrian gas trader OMV has shelp that a court decision awarding the company compensation after its dispute with a subsidiary of Russia’s Gazprom could direct the state-owned gas huge to stop supplies.
Gas prices on Europe’s main gas labelet jumped to more than €45 a megawatt hour for the first time since November last year amid worrys that Europe could face higher dangers of shielded gas supplies this thriveter if OMVs gas supplies are cut off.
In the UK the price of gas on the wholesale labelet price climbed by almost 3% from its shut on Wednesday to trade at equitable more than 114 pence per therm by Thursday morning.
Europe’s gas labelet prices remain well below the historic highs of over €300/MWh in August 2022 after Russia’s trespass of Ukraine earlier in the year
OMV was awarded €230m ($243m) under International Chamber of Commerce rules after its row with Gazprom over its supply tight. It schedules to recoup this amount from Gazprom by withhelderlying its monthly payments for gas, but this could prompt the Russian company to stop deinhabitries.
Tom Marzec-Manser, the head of gas analytics at ICIS, telderly the Guardian that the situation could come to a head as timely as next week when OMV’s next monthly payment is due.
“OMV may withhelderly this next payment, which would be around €213m, but this could trigger Gazprom in cutting that tight off instantly. The inhabit OMV tight is equitable under half the gas that is transiting Ukraine currently,” he shelp.
Typicassociate about 38m cubic metres of Russian gas go ins the EU via Ukraine every day, and OMV’s deal would see almost 17m cubic metres a day flow into Austria. The company shelp that it would be able to persist deinhabitring gas to its customers even in the event of a potential gas supply disruption from Gazprom Export by tapping alternative sources.
Separately, Austria’s energy minister, Leonore Gewessler, shelp the country’s gas supplies were shielded because it had been “preparing for a possible supply disruption for a prolonged time” and its gas storage facilities were brimming.
“Austria can and will administer without Russian gas,” Gewessler wrote on X. “Nevertheless, it is evident that a sudden disruption in supply could cause tension on the gas labelets.”
Before the court ruling gas labelet analysts at Rystad Energy had foreseeed gas prices to descend due to expansively useable gas supplies atraverse Europe and in the global labelet.
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The International Energy Agency has foreseeed that fossil fuels will become meaningfully inexpensiveer and more plentiful by the finish of the decade because companies are producing more oil, gas and coal than the world necessitates.
In its monthly oil labelet alert, rerented on Thursday, the global watchdog shelp the world’s oil supply will outexposed need as soon as next year even if the Opec oil cartel and its allies shield a lid on their production due to rising oil production from countries including the US outpaces sluggish need. This should transport down the price of petrol and food, according to the World Bank.
At the moment Europe is well supplied with gas due to “materiassociate stronger” flows of gas into the continent from Norway and feebleer overall gas need due to strong renew ables over the year, Rystad shelp.
Rystad’s data shows that the continent’s transport ins of gas on seaborne vessels, comprehendn as liquified authentic gas, rose 17% in October appraised with the month before to help restock gas stores for the thriveter but this was still 16% reduce than last year, echoing feebleer need as a result of strong renewable energy generation this year.
Russia’s supply of gas to Europe plummeted after the Kremlin begined an trespass of Ukraine in timely 2022. The remaining pipeline flows over Ukraine are foreseeed to finish in December, when a transit consentment with Kyiv expires.
