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Oil prices rebounded from the previous session's decline this morning, after data showed that third quarter growth in China slightly exceeded expectations.

Futures at ICE and NYMEX tended to the downside on Monday morning and eased until midday. The shut-down of an oil field of Saudi Arabia and Kuwait which they jointly operate was not able to push prices higher. Tendency stays stoft, but Friday's intraday lows couldn't be breached effectively so that prices consolidated their losses in a quiet trade. In the course of the afternoon there was some more movement in the market due to the opening of the session in New York and prices finally breached their so far stable supports. A technical selling wave followed and prices dropped. The news that Saudi Arabian oil exports decreased by 0.326 mb/d in August affected the prices but profit taking was mostly technical. In the course of the evening market players took advantage of the lower prices to go long, especially because the strong euro attracted investors holding the European currency. Futures recovered from their day's lows but finally settled lower in London and New York.

ICE Gasoil contract for November delivery settled at 731.50 USD on Friday, this is 3.50 USD below Tuesday's settlement. With some 64.900 deals the traded volume (front month) was above average.

The RSI didn't breach the 30 line yesterday, that is why the indicator stays at the oversold level but is still seen neutral. The stochastic indicator's lines converge again which makes the indicator lose its bullish influence for the time being. The stochastic indicator at the WTI chart climbed above the 50 line and is therfore slightly bullish, but current trends point downward. Therefore we take a neutral position this morning from a technical point of view.

U.S.

Nymex above avarage: After yesterday's market volatility prices increased slightly this morning. Not because of important news, but due to short covering and a supporting influence of the soft dollar in the early morning. The traded volume at NYMEX is around average at this time of day. Market players are waiting for the European financial and the exchange market to open and will eye the situation in the geopolitical hotspots and the economic indicators to be released today.

Forecast: Crude oil +3.0; Distillates -1.5; Gasoline -1.5 million barrels vs previous week.

Houston (ex-wharf indications 21-10)
380cst $458
180cst $572
MGO $851

New Orleans (ex-wharf indications 21-10)
380cst $467
180cst $563
MGO $847

Singapore (delivered indications 21-10)

WTI is gaining with +$0.16 Singapore paper is down with -$3.60 for 180cst with -$3.75 for 380cst for Nov, and for Dec 180 cst -$3.25 and 380cst with -$3.35 with MGO contracts Nov losing with -$0.48 and in Dec with -$0.52. The cargo market is gaining with 180cst +$0.69, 380cst with +$1.51 and MGO with +$0.47.

The Singapore fuel oil prices, on the other hand, inched up +$0.75 during the Asian Platts window. Singapore fundamentals remain stable and well supplied. The delivered bunker premiums were seen app. +$6.75 above cargo prices.

380cst $485
180cst $499
MGO $735

Fujairah (delivered indications 21-10)

380cst $487
180cst $540
MGO $945

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $459
(1.0 %) : $481
MGO 0.1%S: $725