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How to play crude oil: Dennis Gartman

Given that tensions between Russia and Ukraine have continued to escalate, Dennis Gartman said Monday that it was no surprise that crude oil prices have bounced.

"If you're going to trade the circumstances that are prevailing in Russia, and you want to do it in the oil market, you probably have to be long of Brent and probably have to be short of WTI," he said.

But, he suggested caution. "I'm not sure that I would take that trade because over the course of the past two-and-a-half or three months, we've actually seen that spread—we've seen Brent's premium to WTI—basically evaporate," Gartman said. "But, today you had to go almost a buck and a half at one time. I think that's simply a correction. I think that's simply a manifestation of watching the news over the weekend."

Gartman urged keeping an eye on the term structures, noting that West Texas Intermediate crude "is at a huge backwardation, and backwardations tell you that demand is strong. On the other hand, Brent has gone through a contango in the front months, which tells you there is plenty of supply there."

Contango occurs when the futures price for a commodity is higher than the spot price. When a futures price for a given date falls below the expected value of that commodity on that date, it is said to be in backwardation, the opposite of contango.

Gartman offered one possible explanation for the action in oil.

"I think it's the fact that the global economy is doing quite well, thank you very much," he said.

Gartman added that he would rather be a buyer than a seller of gold at these levels and that he's still neutral on equities.

Read MoreDennis Gartman: Avoid stocks for at least a month

By CNBC's Kristin Cwalinski

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