Crudeoil settled down -1.58% at 7056 as concerns of an imminent strike on Syria eased, and traders reduced positions that had reflected fears of oil supply disruption. US lawmakers are scheduled to reconvene Monday after a five-week summer-break, with a vote on taking military action against Syria expected by the end of the week. President Barack Obama has scheduled interviews with all major US television networks for broadcast later Monday as he tries to persuade members of Congress to vote for a military strike. Political analysts warned that the President lacks broad-based support, as lawmakers fear the country will be dragged into a new Middle East conflict. Also US Secretary of State John Kerry said earlier that Syrian President Bashar al-Assad could prevent a US-led military strike by handing over all chemical weapons within the next week. On Sunday, Assad denied authorizing the August 21 chemical weapons attack, which killed over 1,400 people, hundreds of them children. Russian President Vladimir Putin warned the US against launching military action against the Syrian government without UN approval on Friday. Speaking at a news conference following the Group of 20 summit in St. Petersburg, Putin said Russia would "assist" Syria if the country is attacked. While Syria is not a major oil producer, investors fear that the two-year-old civil war could spill over to affect oil supplies in nearby countries. Market players are also concerned about the involvement of Iran and Saudi Arabia in such a conflict. The two countries are major oil producers. Oil prices surged to a 27-month high of $112.22 a barrel on August 28 amid indications the US was close to taking military action against Bashar al-Assad's government. Crudeoil is getting support at 6995 and below same could see a test of 6933 level, And resistance is now likely to be seen at 7159, a move above could see prices testing 7261.

Trading Ideas:

Crudeoil trading range for the day is 6933-7261.

Crude dropped as concerns of an imminent strike on Syria eased, and traders reduced positions that had reflected fears of oil supply disruption.

Saudi Arabia produced a record 10.10 million barrels of crude oil per day (bpd) in August, and supplied the market with 10.07 million bpd.

Late last month, OPEC said it would pump a record 10.5 million bpd of crude in the third quarter, its highest quarterly level of production ever.