The market outlook for the next couple of weeks is flat to bullish, according to npower’s Magali Hodgson. The Optimisation Desk Manager told ELN that there was increasing investor confidence on the back of LNG tightness predicted this summer.

Japan increased imports of LNG after several plants came offline last year after the Fukushima accident and is in the process of closing its entire fleet.

Magali Hodgson told ELN: “Japan will require more gas imports than they have at the moment so that will provide some support to prices on the curve- mainly out of summer 2012 onwards.”

The current stand-off between Iran and the West over access to the Straits of Hormuz is adding to tensions in the markets also.