Announcement of QE3 will aid crude prices: Fat Prophet

David Lennox of Fat Prophet sees oil trading within the current range. In an interview to CNBC-TV18 he said, if US decides to go for another round of quantitative easing (QE3) then that will help aid crude prices to some extent.

"If Bernanke says, we will definitely be doing a quantitative easing of some form that is substantial, then that weaken the US dollar which will aid commodity prices and crude as well," he added. Citing his view on gold Lennox said, "We would continue to look at participating in gold rally. Given the factors that we have seen in play at the moment, we do think that gold has the potential to push through to USD 2000." Below is the edited transcript of Lennox's interview with Latha Venkatesh and Sonia Shenoy of CNBC-TV18. Also watch the accompanying video. Q: Where do you see crude prices heading in the week and then for the quarter? A: In the short term we will have to see how Libya plays out in terms of whether or not the final push on to AAA will be a short one or drawn out one. Perhaps a greater damage, if it is fairly swift in that AAA does fall fairly quickly. Oil price certainly Brent has the potential to come off and price will weaken back towards USD 100. However should the conflict around the capital take somewhat longer to come to an end, we do think oil will trade within the current ranges that we are seeing. Stories in the market place now are fairly well known and prices are reflecting those stories. Hence we have seen a fairly stable pricing environment for the last week. Q: The other event that could be of equal or more importance other than the one at AAA would be what Ben Bernanke says at Jackson Hole. If indeed some kind of support is extended by the FED on that day, how would the markets start reacting? Would you expect that there would be more bullishness in crude thereafter? A: If Bernanke says, we will definitely be doing a quantitative easing of some substantial form, then that weaken the US dollar which will aid commodity prices and crude as well. That will then have the market looking to how much growth the particular program will stimulate into the economy and with growth especially in the US being the largest consumer of petroleum products. We will definitely see a move on the upside for oil should that happen. We believe that, Bernanke will talk about the potential for programs. But we don