Kishore Narne,VP, Anand Rathi Commodities, said crude could be bullish in the coming weeks also. He told CNBC-TV18 that crude may be headed towards USD 130 per barrel and the worse case is USD 135 per barrel.

Excerpts from CNBC-TV18's exclusive interview with Kishore Narne:

Q: What do you smell on crude; at USD 124 per barrel is it still a long strategy?

A: Yes, because the bullish factors for crude include Iran, Turkey, and Iraq etc. The tightness especially in the derivative markets like refined products, gasoline and distillates, holds on both sides of the Atlantic especially in Europe as well as in the US, will continue to be supportive for crude.

Surprisingly, this week we are seeing a spike in refinery transactions. Going towards the summer season and looking at gasoline inventories, crude could be bullish in the coming weeks also. Probably, this time we will be heading towards USD 130 per barrel or even further, in the worst case may be USD 135 per barrel also.

Q: How are you looking at gold because we have seen some kind of a support coming in for that commodity. It hasn’t breached USD 860 per ounce in the last couple of days. Would you think that the downtrend for the time being has ended?

A: Not so much. The rally, which is currently happening, is not convincing looking at the volumes on the markets. The only factors that are driving it is only the dollar. So, except the dollar nothing is happening.

I believe the dollar’s strength will continue for some more time and maybe for a couple of months because we are at the end of interest rate cuts and dollar strengthening will continue for a couple of months. I think USD 840 per ounce will be breached eventually. This rally should be a good opportunity to sell rather than buy.

Q: We have seen some kind of movement happening for soyabean and RM seed. Would you expect some strength in that one?

A: Yes, by keeping soyabean oil off the trading block, the government has triggered a kind of bullishness and mustard. There is no other way for the edible oil traders to find something to hedge. So, mustard will be a good hedge for them. Right now, the entire edible oil complex continues to be bullish and mustard is one of the best buys on the agricultural side.

Q: Are there any targets there?

A: I believe there may be at least Rs 10 to Rs 15 upside move from the current levels.