Dennis Gartman Turns Bearish Again On Crude Oil

Dennis Gartman shared with CNBC's Fast Money audience his view on crude oil. He thinks there is abundant supply of crude oil and he is quite bearish on the commodity.

He added that the contango in Brent and WTI was widening for the last week and a half and that is in his opinion a signal of a large supply. Gartman said it's hard to say how low can crude oil trade, but he thinks it's possible that WTI is going to drop to $40. He would sell any strength and he wouldn't be a buyer of weakness.

Related Link: Is Dennis Gartman The Best Contrarian Indicator For Oil Prices?

Gartman added that traders were caught off guard on Tuesday with crude oil trading lower on bullish news. There were three bombings in Saudi Arabia and an attack on Chevron Corporation CVX's pipeline in Nigeria and it wasn't enough for the commodity to trade higher, explained Gartman.

The United States Oil Fund LP (ETF) USO closed down about $0.70 at $11.18. It was down about another $0.18, or 1.6 percent, in Wednesday's pre-market session.