Brent may touch $115-117/bbl; bet on gold, silver: Barratt

Falling prices of crude has created some concern in the market and Jonathan Barratt, CEO of Barrattsbulletin.com feels it is an interesting move. According to him, Brent has a good support at USD 105 per barrel and he expects it to move up to USD 115-117. He is also bullish on gold and silver at the present levels.

Here is the edited transcript of the interview on CNBC-TV18. Q: What are you making of the move on crude, from USD 117 per barrel down to USD 107 per barrel. You see this extending further on fears of Saudi intervening? Where do you think is the base?
A: It is certainly an interesting move and looking at the markets on Friday, we see temperature has dropped, but we have got significant stimulus in the markets. In my opinion, it is a little bit overdone. There has been a lot of talk about demand destruction. But at the end of the day when you see such a large move, you got to get some form of bounce and I think it is just a little bit overdone. Q: What would you say is a more likely range for crude over the next couple of months?
A: I guess when I look at the Brent contract, I actually feel that USD 105 per barrel is very good support. WTI at USD 90 per barrel is good support. Then I have actually liked to see both of them trade within a USD 10 range. Brent may go back upto USD 117 or USD 115 per barrel. WTI is just back to USD 95 to USD 98.
We have to remember that it was only a week ago that we were stuck in a very tight range and it has just been these big moves that we have seen. There are very large orders that have caused the markets come under pressure. I think market is content with a narrow range for crude and I think we are just at the bottom-end of it. Q: Despite all the easing, yesterday the Yen went to 79.2 and it has gotten back to 78 levels and gold not crossing USD 1780 with any kind of conviction. Do you think most of this easing has been factored in and gold won't be able to go past USD 1800 in the near-term?
A: I think that really is the one point that we are looking at because when we look at all the stimulus that's gone through the market and the expectations on inflation picking up, we would expect gold to take a move on. I still feel, it will trade higher.
Technically, I like gold and silver at these levels and I think we are just going through a consolidation phase. But at the end of the day, there is an awful lot of money that's going into the system from around the world and that has to be inflationary. As a result of that I think the US dollar will come under pressure and that should support gold down the track.