What Dennis Gartman Thinks about Crude Oil Prices


Nov. 20 2020, Updated 5:14 p.m. ET

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).

Article continues below advertisement

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?


More From Market Realist

  • People at a gas station
    Energy & Utilities
    Best Gas Stocks to Buy After the Colonial Pipeline Attack
  • Recon Africa employees
    Energy & Utilities
    Is Recon Africa a Multi Bagger Stock You Should Buy?
  • Dr. Donald Sadoway (second from left) pictured with Paula S. Aspell, David Pogue, and Chris Schmidt
    Energy & Utilities
    Ambri Expands in the Liquid Metal Battery Space, Still Privately Held
  • Valero gas station
    Energy & Utilities
    Valero Energy’s Prospects in 2021, Rebound in Energy and Gas
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.