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Brent oil futures were down again this morning, as market players looked ahead to a special meeting of OPEC and non-OPEC members later in the day.

Oil futures edged lower on Monday morning. Although the Stochastic indicator remained bullish, the technical constellation brought no clear cues, the more so as the divergence of the RSI was to be taken as a warning sign in the short-term. Market fundamentals brought bullish cues like the decrease in the number of active US oil rigs but also bearish cues like the increase in Saudi oil stockpiles. With +6.9%, China's economy in the third quarter grew more quickly than expected. However, market players took the reading for bearish news as they feared that the country's growth might slow down even more and that the growth target for 2015 (7.0%) might not be reached. Moreover, Iran's oil minister reiterated on Monday morning that Iran will not abandon its aim to raise output once sanctions are lifted - which is nothing particularly new. Still, it leads to expect that the global supply glut will persist. In this environment, traders tended to take profits from the long-positions they had raised at the end of last week. Oil futures thus declined. When they dropped below Friday's lows and below the 21-period moving average, the technical selling pressure increased. The reports on oil production at the Buzzard oil field in the North Sea being ramped up added to pressure - as did the weaker euro. NYMEX Gasoline futures slumped, in particular. Investors expect gasoline demand to be on a low level during the winter months whereas refinery throughput is likely to increase. This will probably lead to builds in gasoline stockpiles. At the end of the day, all contracts at ICE and NYMEX marked considerable losses, though, settling near their lows.

ICE Gasoil contract for November delivery settled at 447.00 USD on Monday, this is -9.25 USD below Friday's settlement. With some 52,400 deals the traded volume (front month) was on average.

Both Brent and WTI have dropped below the 21-period moving average. This generated fresh downward potential. The 21-period moving average thus serves as a resistance today. The lines of the Stochastic indicator have meanwhile converged. If the lines sustainably cross, the indicator might generate a selling signal. This is also the case with the lines of the 7-period and the 21-period moving average at the Brent and the WTI chart. Since there are no selling signals at the crude oil charts yet, the technical constellation can still be assessed as neutral. If oil futures drop below Monday's lows, selling pressure will increase. If the Stochastic indicator and/or the 7- and 21-period moving averages give off bearish signals, the technical constellation is likely to turn completely bearish. Brent and WTI might then head for the lows they hit at the beginning of October.

U.S.

Nymex above average : Oil futures hovered above Monday's lows in Asia and in electronic trading this morning, buoyed by some short-covering. Overall, prices remain on a rather low level, though. The traded volume at NYMEX is on average this morning, with traders already focusing on the December WTI contract, for the November contract is going to expire this evening. Market players are now waiting for the European financial and forex markets to open as well as for the release of several economic indicators. Tonight at 10.30 p.m., the API will release its data on US oil inventories.

Houston (ex-wharf indications 20-10)
380cst $223
180cst $287
MGO $479

New Orleans (ex-wharf indications 20-10)
380cst $236
180cst $288
MGO $472

Singapore (delivered indications 20-10)

Brent is losing with -$1.37. Singapore paper losing with -$7.00 for 180cst with -$6.20 for 380cst for Oct, and for Nov 180 cst -$7.10 and 380cst with -$6.00 with MGO contracts Oct down with -$1.34 and in Nov with -$1.33. The cargo market is losing with 180cst -$2.22, 380cst with -$0.84 and MGO with -$0.33.

380cst $229
180cst $247
MGO $438

Fujairah (delivered indications 20-10)

380cst $242
180cst $273
MGO $614

ARA (Amsterdam - Rotterdam - Antwerp)

Indications for delivered bunkers:
380cst : $231
MGO 0.1%S: $428