What Dennis Gartman Thinks about Crude Oil Prices
Crude oil futures moving averages
November WTI (West Texas Intermediate) crude oil (USO) (UCO) futures were trading above their 20-day, 50-day, and 100-day moving averages of $50.69, $49.37, and $48.31 per barrel on October 10, 2017. These moving averages suggest that crude oil (SCO) (DBO) prices could keep trading higher.
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Crude oil price forecasts
Gartman letter editor Dennis Gartman thinks that US crude oil may not exceed $55 per barrel. Gartman believes that current fundamentals could pressure crude oil prices, as there are no strong bullish drivers. He has also stated that if Iran’s nuclear deal gets canceled—or if any political issue arises—it could support oil prices.
Meanwhile, rising US crude oil production, high US crude oil inventories, and the expiry of OPEC’s (Organization of the Petroleum Exporting Countries) production cut deal in March 2018 would likely pressure crude oil prices going forward.
The EIA (US Energy Information Administration) estimates that WTI crude oil prices will average $49.5 per barrel in 2018. WTI crude oil prices averaged $43.3 per barrel in 2016.