Oil hit fresh lows and noted investor Dennis Gartman thinks the rout isn't done yet. In fact, he thinks it has a lot further to fall, he told CNBC on Friday.
"Crude oil has this terrible, hysterical tendency of falling 75, 80 and 90 percent in value. Can it go down farther from here? Absolutely," Gartman, editor and publisher of The Gartman Letter, said in an interview with "Closing Bell."
He pointed to action in the futures market as a telling sign, specifically the term structures for crude futures.
"Until the front months stop leading the way down, crude still wants to go lower," he explained.
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U.S. crude settled down more than $2 at $57.81 per barrel on Friday, the lowest since May 2009. The contract lost about 11 percent this week.
was last down more than $2 at $61.51, and earlier in the day hit a low of $61.35—the lowest since July 2009.
Gartman noted that demand is lower because Americans have become much more energy efficient.
"We get so much more GDP per barrel of crude oil now than we did in the past. Every one of our automobiles gets better gas mileage than they did in the past. We heat our houses with less fuel than we did in the past," he said.
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That said, low energy prices aren't a bad thing, Gartman noted. Instead, he believes it will create jobs.
Right now, he said, the market's reaction is psychological.
"Everybody is depressed because crude is collapsing and you are just getting baby and bathwater being tossed out all at one time. That will end in the not-too-distant future," Gartman said.
—Reuters contributed to this report