Support for Brent can be seen around $41 a barrel: ClipperData

Crude has shown volatility globally in the past week and Troy Vincent, Oil Analyst at ClipperData, said that rising inventory could impact crude prices and major support for Brent can be seen at around USD 41 per barrel.

In an interview with CNBC-TV18's Manisha Gupta he talked about the price trend in crude.Below is the verbatim transcript of Troy Vincent’s interview to Manisha Gupta on CNBC-TV18. Q: What is your sense, we have seen very volatile moves coming in from crude. Where do you see prices taking some support now? A: Yes, from a technical trading perspective as you said in Brent we got above 50, in West Texas Intermediate (WTI) as well they are momentarily but that really proved as a hard ceiling for prices. I was convinced after failing on multiple attempts to make a breakout above that level that we would be retracing back down to that USD 43 support level in WTI and a little more above that around USD 44 in change for Brent. I see that as the short term support level but as you have seen this morning in the proximate action below that support level and that really brings in for WTI the major support level here at USD 40 per barrel and just above that as well around USD 41-40 in Brent. Q: Even as we have seen a decline in for the US inventories it really is about the refined fuel because the gasoline demand has been weaker and that has brought those prices down? A: Yes, that has been a major and will be a major story going forward here as we head into the fall and as the summer begins to conclude for oil prices both domestically here in the US and globally as you said the gasoline product demand it has maintained a strong level but it just has not been enough to materially bring down those stocks and actually what we are now seeing is and we have been forecasting for a number of months now is that that crude glut is just simply transitioning into a product glut and there is a very good example of that on the east cost of the United States where we are seeing gasoline inventories hit record highs but that is really a broader picture of across global markets as we have seen products grow not just here domestically but also in other markets. So, it seems as though we are really heading into a product glut that's just transition that crude glut over to gasoline and other products. However that could spell bigger problems for crude here in the medium term as demand for crude from refiners as the crack spreads and the profitability on refining into gasoline falters.