Crudeoil settled up 3.43% at 3049 recovered as investors turned to the more riskier equity assets with most major global stock markets strengthening. Investors also weighed the upcoming FOMC meet next week, even as the dollar trended lower against some major currencies. The Fed meets on Sept 16-17 to decide whether to raise interest rates. Support seen after China's Shanghai Composite Index jumped 2.9%, after a slew of support measures by Beijing. The measures included tax exemption on dividends and a move to introduce a market-wide circuit breaker system to stabilize the market also helped investors shrug off weak data underlying weakness in the world's 2nd-largest economy. With production outpacing demand due to OPEC's refusing to cut production, crude oil has failed to sustain last week's rally. Crude oil prices have fallen almost 60 percent since June 2014 on a global supply glut, with prices seesawing in recent weeks as concerns about a slowing Chinese economy caused turmoil in global stock markets, while production remained near record highs. On the supply side, recent speculation that some producers were willing to cooperate in cutting output in support of prices was dealt a blow by Russia and Mexico this week, who both said they would not cut. The OPEC is producing close to record volumes to squeeze out competition, especially from U.S. shale producers, which have so far weathered the price plunges to keep pumping oil. Meanwhile trader will eye API's weekly inventory report, usually due on Tuesdays, will be issued on Wednesday this time due to Monday's Labor Day holiday. Technically market is getting support at 2967 and below same could see a test of 2885 level, And resistance is now likely to be seen at 3113, a move above could see prices testing 3177.

Trading Ideas:

Crudeoil trading range for the day is 2885-3177.

Crude oil recovered despite concerns remained that high global production was being met by increasingly slowing demand.

Despite calls from some OPEC members for cuts to OPEC output, crude production from Saudi Arabia is likely to stay around current levels in the fourth quarter.

Venezuela president said his nation has signed a deal for a $5 billion loan from China aimed at helping boost its oil production.