Abstract: A circular knitting machine is provided and includes a cylinder, a gear ring supporting and rotating the cylinder, a cam holder, a cam ring supporting the cam holder and a bed supporting the cam ring and the gear ring, and further including an oil collection system for controlling and collecting leaked oil to prevent the oil from staining the fabric being knit. The oil collection system includes a protrusion-free lower surface on said gear ring that is inclined outwardly and downwardly, a chamber in said bed for containing machine parts, an oil collecting cavity in the bed underneath the inclined surface of the gear ring and a reclamation pipe for reclaiming collected oil.