Natural gas prices were extremely volatile last Friday after news emerged of Russian supply cuts to Austria and Ukraine preparing itself for more conflict against Russia. The trading day saw large intraday swings, however, price movements remained relatively minor compared to the previous close.
What does this mean?
At around 3pm UK time, officials confirmed that Russia’s Gazprom would stop natural gas pipeline flows to Austria. The decision followed a dispute with Austrian operator OMV, which had recently stated it would not pay an invoice due around November 20. The market reacted quickly, with the Summer 2025 front-season contract surging to 110p/therm (3.75p/kWh) — levels not seen since October 2023.
Geopolitical tensions escalated in parallel. The United States, along with allies France and the United Kingdom, approved the provision of long-range missile systems to Ukraine. These weapons would enable strikes deep into Russian territory. The Kremlin condemned the move, calling it an “escalation.” It warned of severe consequences, including the potential destruction of Ukraine’s statehood and a greater risk of global conflict.
Summary
Despite these developments, the UK’s NBP gas prices have remained steady as of this Monday morning. Front-month and front-season contracts are trading near their previous settlements.
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