KEY POINTS
  • Russia's Gazprom on Tuesday informed Poland and Bulgaria's state gas companies, PGNiG and Bulgargaz, that it will halt gas supplies.
  • This came after the two countries refused President Vladimir Putin's demands to pay for supplies in the Russian ruble.
  • The escalation sent the Dutch wholesale gas contract for the day-ahead, a benchmark for Europe, up more than 20% Wednesday.
  • Dutch TTF Natural Gas futures are up almost 60% year-to-date.

Veteran natural gas trader Bill Perkins warned Thursday of potentially "catastrophic pricing" this winter if Russia's move to cut gas supplies to Poland and Bulgaria ends in a full-blown energy blockade. 

"It's a dicey market right now," Perkins, CEO and head trader at Skylar Capital Management, told CNBC.