Dennis Gartman Claims the Era of Oil is Over

By on October 28, 2014

Gartman LetterFrequent CNBC guest and editor of the Gartman Letter, Dennis Gartman, was on the network’s Fast Money program yesterday proclaiming the end of the oil era. This as oil has collapsed over $20 per barrel in the past three months and West Texas Intermediate (WTI) crude sits just above $80.

The most important factor in Gartman’s prediction of continued depression in the oil patch is the fact the Strategic Petroleum Reserve (SPR) of the U. S. is required to keep 90 days supply on hand, but according to the International Energy Agency (IEA) the SPR contains 245 days of supply, which the Obama administration should be selling “and why they are not is beyond me,” Gartman said.

Gartman also mentioned news “no one is talking about” from Lockheed Martin earlier this month that the aerospace giant has made a technological breakthrough in developing a nuclear fusion reactor that will be available in 5-10 years, possible sooner, and “fusion is going to be the great nuclear power for the next 150 years.” Gartman also sees people driving less and less and using much less gasoline in global terms, national terms, and per capita terms.

Gartman proclaimed crude oil will go lower, a lot lower.

Fast Money’s host Melissa Lee pressed Gartman on his predicted price for black gold, which Goldman Sachs had recently become bearish on predicting $75 in the first quarter of 2015. Gartman blushed when Lee informed him that he had told the Fast Money producer he saw oil collapsing to $10, and said no one wants to go on the record with that kind of a prediction. Gartman stated oil is headed demonstrably lower over the next several years as it goes the way of whale oil at the turn of the 20th century when crude oil came on line.

Gartman added that OPEC has lost control of the oil price, new fuels are being developed to replace it, and contango in the market says supplies are abundant.

Gartman has gained some notoriety for being a contrary indicator at the website Zero Hedge. If one places “gartman” in the search block, numerous results will pop up.

Gartman’s difficulties in managing money with his Canadian based Horizons AlphaPro Gartman ETF were mentioned back in 2009 (link).

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