Crudeoil settled down by -2.37% at 6757 after a diplomatic resolution to the Syrian crisis calmed worries that crude supply from the Middle East would be at risk. Prices fell after the US and Russia agreed over the weekend on terms to dismantle Syria's chemical weapons cache. Both countries gave Syria one week to disclose its chemical weapons stockpiles, which will go undergo inspections by November. A peaceful solution to the crisis lowered the chances of a US military strike on Syria, which could have engulfed the broader oil-rich Middle East and threaten global supply. Also pressure mounted as Rupee rallied to a near one-month high on Monday, as hopes for a prolonged easy monetary policy in the US boosted emerging markets, but surging headline inflation put domestic policy challenges back in focus. Meanwhile data reveled that Empire State manufacturing index fell to a four-month low of 6.29 in September from 8.24 in August. Separately, the Federal Reserve reported that US industrial production advanced 0.4% in August after having been unchanged in July, in line with expectations. But the US, Britain and France warned President Bashar al-Assad that there would be consequences if he failed to hand over Syria's chemical weapons and said a U. N. report on the Aug. 21 sarin gas attack left little doubt that Assad's forces were to blame. Also the Fed's begins its two-day meeting later on Tuesday and is expected to cut its monthly $85-billion bond purchases by at least $10 billion, which could fuel further weakness in oil prices. Technically market is getting support at 6659 and below same could see a test of 6560 level, And resistance is now likely to be seen at 6871, a move above could see prices testing 6984.

Trading Ideas:

Crudeoil trading range for the day is 6560-6984.

Crude dropped after the United States agreed to call off military action against Syria, easing supply concerns.

Prices began to drop after Russia offered to help put Syria's chemical weapons under international control

The unrest in Libya has already sent production to a post-war low of 150,000 barrels per day.