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Crude oil futures rebounded along with global stock markets this morning, one day after falling sharply due to fresh concerns over the health of China's economy.

While the technical constellation did not give direction on Monday, the indicators triggering contrasting signals at the WTI chart, fundamentals were bearish for oil. If the latest drop in the number of active U.S. oil rigs, announced by Baker Hughes, lent some support, the IMF's downward revision of global economic growth in 2015 and 2016 dominated investors' sentiment. The comments of IMF president Christine Lagarde mainly weighed on equity markets as they are seen as an indicator for economic stability and oil demand. As these have an increasing influence on oil futures their drop affected the prices at ICE and NYMEX that consequently lost ground. Oil's slide was accelerated by technical movements as traders took profit after several short-term supports were breached. More incidents at some U.S. refineries also weighed on prices as these affect oil demand. Selling pressure thus prevailing, oil prices settled lower in London and New York.

ICE Gasoil contract for October delivery settled at 456.50 USD on Monday, this is 10.50 USD below Thursday's settlement. With some 48,200 deals the traded volume (front month) was below average.

The buying signal the Stochastic had triggered at the WTI chart on Monday has meanwhile been absorbed and the indicator is seen neutral again. Yet the selling signal the 7 and 21 day moving average lines have triggered on the WTI chart is still bearish for the contract. At the gasoil chart the two lines of the Stochastic crossed last week but are diverging again. If this cannot be seen as a fresh selling signal the indicator is yet slightly bearish again. However, in a lateral trend the Stochastic's influence is not as strong as the indicator tends to trigger false signals in such a constellation. As oil's downside is limited after Monday's strong price decline we assess the technical constellation still as neutral today not without warning that, should prices breach the lower limits of their lateral trends, technical selling pressure would strongly increase.

U.S.

Nymex on average : Oil futures are moving in a narrow lateral range in Asian trading hours and Globex electronic trading this morning, just above their Monday's lows weighed down by the steep drop of Asian markets after the release of some morose Chinese indicators. The traded volume at NYMEX is about on average this morning. Investors are now waiting for the European financial and forex markets to open, for the release of a series of economic indicators and of the API's report on U.S. oil stocks at 10.30 p.m.

Houston (ex-wharf indications 29-9)
380cst $222
180cst $271
MGO $484

New Orleans (ex-wharf indications 29-9)
380cst $234
180cst $285
MGO $469

Singapore (delivered indications 28-9)

Brent is losing with -$0.55. Singapore paper dropping with -$5.75 for 180cst with -$5.20 for 380cst for Oct, and for Nov 180 cst -$6.00 and 380cst with -$4.90 with MGO contracts Oct losing with -$0.70 and in Nov with -$0.72. The cargo market is gaining with 180cst +$0.01, 380cst losing with -$0.46 and MGO with -$0.41.

380cst $228
180cst $241
MGO $434

Fujairah (delivered indications 28-9)

380cst $236
180cst $254
MGO $522

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $218
MGO 0.1%S: $428