Gartman: Crude Oil Could Be Heading to This Level
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As refining capacity draws down due to Hurricane Sandy, crude oil stands to continue its downward slide, commodities trader Dennis Gartman said Monday on CNBC.
On "Fast Money," he said that "crude oil is backing up already" and that it would continue to be under pressure, as it heads down toward $80 per barrel.
(Read More: Will Hurricane Sandy Cause Gas Shortage?: Pros)
The question whether refineries taken off-line because of the storm would sustain electrical damage, further hampering a return to productivity.
Gartman suggest owning distillates and gasoline, as well as shorting crude oil.
(Read More: Looking for Storm Plays? Not Too Late for This One)
But he noted that it was West Texas Intermediate that should be sold, not Brent crude.
Trader disclosure: On Oct. 29, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Jon Najarian is long ALL Puts; Jon Najarian is long DAL Puts; Brian Stutland is Short SPY puts; Brian Stutland is Bull VIX futures and options spreads; Brian Stutland is Short PSX puts; Brian Stutland is Long calls and short puts GNRC; Brian Stutland is Short put and call GOOG; Brian Stutland is Bull UGA option spread; Brian Stutland is Long stock and short calls and puts VLO; Brian Stutland is Long PGX; Brian Stutland is Long PFF; Brian Stutland is Bull IWM call butterfly; Simon Baker, Nothing to Disclose.
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