Crude to trend lower from current levels: Commodity Broking

Commodity Broking Services' Jonathan Barratt told CNBC-TV18 that he expects to see crude trend lower from the current levels. He also indicated that Jackson Hole meet for QE3 announcement would not aid crude much.

He further stated, "With the Libyan event, we would see an increased supply of light sweet crude to the market which will push Brent a lot lower and the West Texas higher. And with the Jackson Hole event, it would not have much weight on pushing the oil prices significantly higher if it becomes positive because we have a wide inventory in the market."
He feels that the crude prices would continue to be relatively weak. Below is the edited transcript of the interview. Also watch the accompanying video. Q: The US believes that Gaddafi is not longer in control. How much comfort is crude taking from these news reports?
A: It appears that the rebels seem in control. Earlier this morning, we saw quite a large sell off in the West Texas as well as Brent contract. We saw a bit of rally, but now it has resumed its trend lower. This will continue if people realise what has exactly happened. Q: How carefully are traders in the crude market watching out for the Jackson Hole event? If it is a positive event from markets point of view, what kind of upside target are people talking about?
A: If we look at the Jackson Hole event in stride with the recent happening to oil in the wake of Gaddafi, there are two opposed ideas at the moment. With the Libyan event, we would see an increased supply of light sweet crude to the market which will push Brent a lot lower and the West Texas higher or West Texas will see no movement and Brent will go lower.
With the Jackson Hole event, if it becomes positive, it would not have much weight on pushing the oil prices significantly higher because we have a wide inventory in the market. They are two different events, but they will still act together. We would see prices continue to be relatively weak. Q: The call for a peak in gold is getting stronger day by day. Do you see gold prices to rise further?
A: We get different set of variables coming in, which changes dimensions of the market. We have been getting used to the US debt and European debt issue.
Today, gold is exceptionally well bid. We will probably attempt to look at USD 1890 per ounce again tonight, which is the record high. Prices will remain relatively well bid.
If the US and Europe cannot resolve their issues on debt, then there will be a break down. As a result of that, gold can trade through that USD 1,900-1,920 per ounce and may even touch that USD 2,000 per ounce. Q: What is your view on silver?
A: I am disappointed with silver. When gold continued to get to those high, silver didn