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Crude oil futures traded at the lowest level in more than six years this morning, as steep declines on China's stock market rattled investors' confidence.

Market fundamentals and the technical constellation were bearish on Monday morning. The fact that some analysts had cut their price forecasts, expecting further downward potential at oil markets, favoured further tests of the downside, as did the contraction of the Japanese economy in the second quarter and the increase in the number of active US oil rigs. In the course of the morning, oil futures at ICE surged, however, surpassing short-term resistances. This automatically triggered further technical buying orders. WTI remained below its first resistance, as the overall situation was still bearish. Even so, oil futures at ICE were fostered by news on the shut-down of a refinery in Kuwait. This news particularly prompted investors to raise their buying orders with ICE Gasoil. The rise was not sustainable, though. Data provider Genscape said that the data on US crude oil inventories was likely to show massive builds in Cushing crude oil stocks this week. Overnight, oil futures thus shed their gains ending the day near the levels they had opened.

ICE Gasoil contract for September delivery settled at 475.50 USD on Monday, this is +1.00 USD above Friday's settlement. With some 56,200 deals the traded volume (front month) was on average.

The bearish cues the Stochastic indicator had given at the Brent and the Gasoil charts on Friday have meanwhile been absorbed and so the indicator can be considered neutral again. The RSI doesn't give any fresh cues, either, moving in neutral territory. At the WTI chart, the Stochastic indicator might generate a buying signal, however, if its lines sustainably cross. In this case, the contract might renewedly approach the MA 7, which has been the upper limit of WTI's downtrend which had started to develop in mid-July. To the downside, Monday's lows might serve as key-supports. If oil futures drop below these levels, technical buying might be triggered. Since there aren't any fresh cues at the moment, the technical constellation can be considered neutral, however.

U.S.

Nymex above average: After having declined over night, oil futures at ICE and NYMEX traded in a rather narrow range in Asia and electronic trade this morning. Meanwhile, they have dropped below their first supports. The traded NYMEX volume is above average at this time of day. Market participants are now waiting for the European financial and forex markets to open as well as for the release of some economic indicators. Moreover, the API will release its data on US oil inventories at 10.30 p.m.

Houston (ex-wharf indications 18-8)
380cst $232
180cst $387
MGO $478

New Orleans (ex-wharf indications 18-8)
380cst $257
180cst $318
MGO $473

Singapore (delivered indications 18-8)

WTI is bearish with -$0.29. Singapore paper is down with -$3.80. for 180cst down with -$3.80 for 380cst for Sep, and for Oct 180 cst -$3.55 and 380cst with -$3.80 with MGO contracts Sep losing with -$0.32 and in Oct with -$0.08. The cargo market is bearish with 180cst -$3.14, 380cst with -$4.33 and MGO with -$0.61.

380cst $249
180cst $263
MGO $430

Fujairah (delivered indications 18-8)

380cst $263
180cst $302
MGO $647

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $234
MGO 0.1%S: $438