Liquefied natural gas (LNG) cargoes are returning to Europe after a hiatus that saw vessels flocking to Asia amid a historic cold snap last month.

Milder weather in Asia along with stronger supply levels have spot prices for March delivery trending below $8.00/MMBtu, disincentivizing European reloads and marginal cargoes from the United States. Asian spot prices skyrocketed above $30 in January amid a supply crunch, but they began falling in the second half of the month. Meanwhile, prompt prices in Europe have gained since Tuesday on record carbon prices that make gas more competitive with coal and colder weather forecast for next week.

Alex Booth, head of research at data intelligence firm Kpler, said during a webinar Thursday that four vessels so far have been diverted back to...