king of commodities says. Crude could hit $15. Here's why

Discussion in 'The Howard Stern Show' started by rory, Mar 20, 2015.

  1. rory

    rory Well-Known Member

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    [​IMG]

    Dennis Gartman
    has bad news for oil(Intercontinental Exchange Europe: @WTCL20J-GB): It's going to go "stunningly" lower.


    In an interview Thursday with CNBC.com's"Futures Now,"the Commodities King said that a combination of a rapidly rising inventories and a strong dollar could lead to $15 oil by the end of the year.

    "For months I've said that crude oil is heading from the upper left to the lower right of the chart," said the CNBC contributor and editor and publisher of The Gartman Letter. "I wouldn't be surprised if oil went down to about $15 a barrel."

    Crude oil prices have been in a steep and steady decline over the past six months, down more than 50 percent trading just above $40 a barrel. Traders had hoped an improving economic picture in both the U.S. and Europe could give crude a lift.

    At the start of February, crude staged a sharp and violent rally off its lows. But according to Gartman, there simply is too much supply to contend with. As such, he expects future crude rallies to be met with a similar fate.


    "That is not how a bull market is supposed to act," he said. "That is how a bear market acts."

    Read More US crude settles down 70 cents, at $43.96 a barrel

    Gartman said he's looking to the crude futures market for clues on when the selling may abate. Currently forward prices for crude contracts are higher than near-term or spot prices, a dynamic referred to as contango. Futures traders say this is typically a bearish sign as it reflects an excess near-term supply. As inventories build, storage could soon become a serious issue.

    "We're going to have an abundance of crude. Storage is going to be topped out very soon and the front month spread is going to continue to deteriorate," he said.

    Gartman says until nearer-dated crude contracts become more valuable than longer-dated ones, oil will continue to slide.

    "No if, and, or but about it," said Gartman. "As [the contango] widens, your propensity, your urge, your intense and any [other] desire to be a buyer of crude will be deferred."

    http://finance.yahoo.com/news/gartman-crude-could-hit-15-114809196.html
     
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  2. kinneyjames

    kinneyjames Well-Known Member

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    Good.
     
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  3. EndOfLine

    EndOfLine PLATINUM SPONSOR VIP

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    That's funny that a crude is at $44, yet a gallon of gas is still $2.50 here. Hmmmm....
     
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  4. Mr Fantastic

    Mr Fantastic Found Nemo VIP

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    Dennis is one letter away from this...




    [​IMG]
     
  5. Blazing Buffalo

    Blazing Buffalo Members Only

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    No one knows what's going to happen to oil. The only thing that worries me is that if the price goes down enough, people in high places will start thinking its a good idea to tax it more. There's already whispers of wanting to bring it up to $3.50 a gallon. And when the price goes up again - as it definitely will and always has - those taxes stay in place and we - as usual - are fucked.
     
  6. RonHeinzkaboot

    RonHeinzkaboot Adultophile VIP

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    I hope it lowers the cost of airline tickets but I'm sure it will not
     
  7. Phantom Lord

    Phantom Lord Well-Known Member

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    I know somebody that is not going to like this.

    [​IMG]
     
  8. EndOfLine

    EndOfLine PLATINUM SPONSOR VIP

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    :jj: :jj: :jj:

    Airlines are pulling in record profits right now because of fuel prices (except for the few that have high hedges).
     
  9. Head Censor

    Head Censor Turgid Member VIP

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    Nice. Looks like a retarded Slash.
     
  10. Chicken Soda

    Chicken Soda Unknown Member

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    Refinery strike is still on going.
     
  11. DogStar69

    DogStar69 Well-Known Member

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    How great would it be if gas went under $1. I don't think it will. i know in Florida about 35 cents is tax per gallon.
     
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  12. DogStar69

    DogStar69 Well-Known Member

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    another thing is that gas stations don't have to lower their prices if they don't want to. It tool a long time to come down and then went up 20 cents in a week.
     
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  13. Wesmantooth

    Wesmantooth VIP Extreme Gold

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    great and fuck the stock market and my investments bc that entire racket is so freaking rigged. I will gladly take any loss that comes indirectly from this
     
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  14. yaddc

    yaddc Well-Known Member

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    If only it would fall at the pump.
     
  15. yaddc

    yaddc Well-Known Member

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    Keep that shit low I'm getting 15/16 to the gallon and that's down hill.
     
  16. R.P. McMurphy

    R.P. McMurphy Well-Known Member

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    ...summer blend gas comes with a higher price.
     
  17. EndOfLine

    EndOfLine PLATINUM SPONSOR VIP

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    'summer blend' :jj:

    Just another bullshit way to artificially raise the price.

    Some sultan sneezes in Saudi Arabia and gas goes up .30 a gallon - but takes a good 2 months to fall back down.
     
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  18. The Snork

    The Snork Well-Known Member VIP Gold

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    I won't be happy until those filthy towelheads are hanging themselves with their own unwound turbans.
     
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  19. MyLazyHand

    MyLazyHand Russia and France Know What to Do

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    No, that ended in the last week.
     
  20. Robert Higgins

    Robert Higgins Well-Known Member VIP

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    Thanks Obama
     
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