Dennis Gartman Is Bearish On Crude Oil, Bullish On Natural Gas
Speaking on CNBC's Fast Money, Dennis Gartman said that crude oil is going to trade lower and that he sees it at $85.
He explained that the term structure for crude oil continues to be very bearish. The front month contracts, even on up days, are losing to back months. Gartman added that crude oil is in storage because it is currently facing a demand problem.
Gartman issued a buy recommendation for natural gas Monday morning because he feels that the commodity held very well on bearish news and it even managed to trade higher. This is a sign of a turnaround and it is supported by a forecast of hot weather which should increase the electricity demand in the near term. Over the next several months, Gartman sees natural gas between $5.00 and $5.50.
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