There may actually be strength in the oil market before the final deal with Iran is reached, investor Dennis Gartman told CNBC on Thursday. but once that deal happens expect crude prices to hit new lows.
Oil closed down Thursday after global powers negotiating with Iran announced they had reached a framework of agreement on the country's nuclear program. If Tehran implements the framework measures, it would eventually result in the United States and the European Union easing sanctions, originally implemented to squeeze Iran's nuclear program. The end of those sanctions could bring millions of additional Iranian crude barrels into the market.
A final deadline for the talks is set for June 30, which could be a testing time for crude markets.
"Between and now and June, you may actually see the front months WTI strengthen up simply because … the market will know [while] there will be plenty of crude after June, there may be less supply before June," the editor and publisher of The Gartman Letter said in an interview with "Closing Bell."
However, after once the deal is completed, "you are going to see new lows in crude oil because the Iranians are going to be extraordinarily aggressive in selling. They have no choice."