Liquefied natural gas (LNG) tankers en route to Asia are abruptly being rerouted to Europe to take advantage of wide premiums as prices on the continent again soared to new records on Tuesday. 

Analysts are watching nearly 10 vessels that have changed course as diversions have increased in recent days along with a rally in European prices. Europe’s leading natural gas benchmark, the Title Transfer Facility (TTF), jumped nearly $2 on Tuesday, when the January contract closed above $50/MMBtu, breaking the record set Monday.

Prices were again volatile Tuesday as January TTF swung to an intraday high of nearly $55. February prices finished at nearly $60, up by more than $11 from Monday’s settle. Bullishness again dominated trading after Russian gas flows through the Mallnow...