×

Gartman: There's too much oil

After oil prices fell sharply, commodities sage Dennis Gartman said he sees the possibility for even lower prices.

WTI crude oil closed at $58 per barrel Thursday on expectations OPEC will keep its output at 30 million barrels a day. But even at that pace, Gartman said, there simply is too much supply. He spoke a day before OPEC on Friday decided to maintain current production levels.

Read MoreOPEC agrees to maintain production limit: Saudi oil minister

"There's plenty more crude oil being found all around the world. I think it's going to be very difficult to push WTI much beyond $65 maybe $66," Gartman said Thursday on CNBC.com's "Futures Now."

"I think it's going to be relatively easier to get the WTI down into the high $40s or low $50s."

However, Gartman expects oil prices will stay relatively range-bound for the time being.

"The whole world is happy with $60 WTI [and] with $65 Brent," he said. "Producers are happy with that number—or at least reasonably happy with that number. Consumers are happy with that number. The users of crude oil are happy with that number. It wouldn't surprise me if we actually did go sideways for a protracted period of time."

Read MoreOil's breakout just'failed miserably': Trader

Watch "Futures Now" Tuesdays & Thursdays 1 p.m. ET exclusively on FuturesNow.CNBC.com!

Videos

  • Rates are entering a new phase in their cycle: Yamada

    Bonds are entering a new rising rates cycle for the first time in decades. Technician Louise Yamada explains what this means for the market.

  • What's next for the oil market?

    Following a recent correction, Tom Kloza of the Oil Price Information Service tells CNBC's Jackie DeAngelis where crude is headed next.

  • Futures Now, February 15, 2018

    The market's coming back, but one trader isn't buying the bounce. Technician Louise Yamada says this is the next line in the sand for rates. And Oil's back at $60, but Tom Kloza, Oil Price Information Service, says the rally will stall, with CNBC's Jackie DeAngelis and the Futures Now traders.

Host Bio & Watch Now

Trader Bios