Crudeoil settled down -3.12% at 6836 tracking fall on NYMEX Crude oil which declined for a second straight day as the US claimed that Russia's bid to force Syria to surrender the chemical weapons might averts military actions, alleviating concerns that the conflict will undermine Middle East oil exports. Crude oil prices tumbled after Syrian Foreign Minister Walid al-Moallem said that his country will agree to turn over its chemical weapons to international control, easing concerns over a US military strike against Syria. US President Barack Obama said that he would put plans for a military strike against Syria on hold if the country agrees to a Russian proposal to place its chemical weapons under international control. 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. Crude 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. Meanwhile, official data showed that Chinese industrial production rose 10.4% in August, beating expectations for a 9.9% increase and accelerating from a 9.7% gain in July. The upbeat report added to optimism over China's economic outlook after trade data released over the weekend showed that exports rose more than expected in August. Investors continued to speculate over the timing of the Fed's widely expected reduction in monthly bond purchases following Friday's weaker-than-forecast US jobs report. Technically market is getting support at 6731 and below same could see a test of 6625 level, And resistance is now likely to be seen at 6990, a move above could see prices testing 7143.

Trading Ideas:

Crudeoil trading range for the day is 6625-7143.

Crude dropped as a Russian proposal to avert a U. S. strike on Syria gathered steam, easing concerns over supplies disruptions

OPEC said the world oil market was well supplied despite a plunge in Libya's output and forecast a further drop in its oil market share in 2014

Organization of the Petroleum Exporting Countries said although "some supply outages" had put upward pressure on prices