Dennis Gartman Says the Bottom is in for Oil
Citing the cost of storage as being key, Gartman said the contango, or front months compared to the back month’s price, had narrowed. Gartman said this was fascinating as the price of crude had fallen several dollars while the front month’s price had gained relative to the back months, which is not how a bear market should act, but how they act when they are ending.
Gartman stated that he now thinks the low is in for oil after he’s been “manifestly bearish” for 1 1/2 years.
Gartman said bear markets go to an obscene number, and a number in the $30’s is that number for WTI.
Gartman admitted he could be wrong since he’s been at this for 40 years and has been wrong several hundred times.
Gartman also thinks the lows have been made in grains and gold in dollar, yen and euro terms. Gartman added that the time to be short commodities had past.
Back in October 2014, Gartman said the era of oil was over (link).