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Dennis Gartman Makes the Bear Case for Crude

Monday, 22 Oct 2012 | 5:58 PM ET

An abundance of crude oil on the market will continue to put downward pressure on prices, commodities trader Dennis Gartman said Monday on CNBC.

On "Fast Money," he said that crude was facing long-term pressure.

Dennis Gartman Makes Bear Case for Crude
There's an abundance of crude oil out there, which doesn't bode well for prices, commodities trader Dennis Gartman says.

"We are driving less, but every time we get rid of an old automobile that might've gotten 12, 13, 14, 15 miles to the gallon, we're replacing them with automobiles that are going to get 25, 28, 30 miles to the gallon," he said.

"We're driving less, and we're driving more efficiently. That's not something that's going to put an upward bid on crude oil prices, on gasoline prices. I think the trend is downward. I think rallies are to be sold into, and I've been selling it for the past week and a half."

Gartman said that futures were providing a tell for the crude market.

"There's just a lot of supply out there," he said.

Trader disclosure: On Oct. 22, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long MSFT; Karen Finerman is long M; Karen Finerman is short SPY; Karen Finerman is short IWM; Karen Finerman is short MDY; Tim Seymour is long BAC; Tim Seymour is long INTC; Tim Seymour is long FCX; Jon Najarian is long AAPL; Jon Najarian is long GS; Jon Najarian is long JPM; Jon Najarian is long FB; Jon Najarian is long NFLX; Jon Najarian is long BTU; Jon Najarian is long SLV; Jon Najarian is long GLUU; Jon Najarian is long STII; Jon Najarian is long CME; Jon Najarian is long CBOE; Joe Terranova is long VRTS; Joe Terranova is long SBUX; Joe Terranova is long SWN; Joe Terranova is long TRV; Joe Terranova is long VZ; Joe Terranova is long XOM; Joe Terranova is long CVX; Joe Terranova is long GS; Joe Terranova is long GLW; Scott Nations is long BAC; Scott Nations is long C; Scott Nations is long BAC CALLS; Scott Nations is long SPY; Scott Nations is long VIX; Dennis Gartman is short CRUDE OIL.

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