European prices keep steady on cold temperature forecasts

European gas prices rebounded on Tuesday, supported by colder temperature forecasts for early April, concern over potential delays in LNG deliveries due to the Suez Canal blockage and steady EUA prices. A downward correction in coal prices, a sharp drop in gas demand over the past few days due to unseasonably mild weather across Europe and record high LNG deliveries in NW Europe in March failed to exert bearish pressure. Asian spot LNG prices were stable yesterday and still trading at a small premium to European peers, keeping the Europe-Asia arbitrage window closed for the moment.