US Natural Gas Had Its Worst Day Since 2018: RSI falls Below 50

posted their worst daily performance since mid-November 2018 today, plummeting 17% to 7.2/MMBtu, as of writing, after Freeport LNG announced early Tuesday morning that it does not expect the export facility to resume full plant operations until late 2022 due to the explosion occurred on June 8.

The Freeport LNG facility has a production of 2 billion cubic feet per day, or around 16% of US LNG export capability, and has been operating at near full capacity in recent months.

The disruption at one of the largest US liquefied natural gas export terminals will put a severe upward pressure on European gas prices (), which have been falling in recent months as Europe has significantly increased its liquified natural gas imports from the United States.

Technically, are now testing the 2022 bullish trendline, with the momentum indicator (14-day RSI) dropping to 38, the lowest level since the start of the year.

A breach below the psychological threshold of 7/MMBtu would open the door for a bearish assault to the nearest support in the 6.50 zone (lows of April 25 and May 10).