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What Dennis Gartman Thinks about Crude Oil Prices

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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.

Remember, higher crude oil prices have a positive impact on oil producers (XLE) (VDE) like EOG Resources (EOG), PDC Energy (PDCE), and Cobalt International Energy (CIE).

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Crude oil price forecasts 

Recent market surveys estimate that US crude oil (USL) (UWT) and Brent crude oil (BNO) prices could average $50 per barrel and $53 per barrel, respectively, in 2018.

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.

For more on crude oil prices, check out Market Realist’s series What to Expect from Crude Oil Prices in 4Q17. For updates on natural gas, read An Opportunity in Natural Gas?

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