Oil and Gas

Dennis Gartman: Here’s really how the wildfire in Canada could impact oil prices

WTI likely moves to premium over Brent: Gartman

Market watcher Dennis Gartman said Tuesday that U.S. oil prices may move to a premium over Brent because of the Canadian wildfire, which is weighing heavily on North American output.

"The problem in Alberta now is not that the oil facilities themselves are under duress; it's that the housing for the people working on the oil fields has been effectively decimated," the editor of The Gartman Letter told CNBC's "Worldwide Exchange."

Despite the supply disruptions, West Texas Intermediate crude is not rallying too significantly, which Gartman attributes to comments from the new Saudi oil minister, Khalid al-Falih.

"[Al-Falih] suggested that over the course of the next 10 or 15 years, crude oil would eventually end up being worthless and the Saudis have no choice but to pump a lot more oil to get what value they can out of it right now," Gartman said.

As for energy's impact on stocks, Gartman believes attempts to prove the two move in tandem is amusing. "They move in contravention with one another, not in convention. Weaker crude should give way to rising stock prices and we will eventually get back there."

Michael Bell, global market strategist at JPMorgan Asset Management, told CNBC's "Worldwide Exchange" in a separate interview Tuesday he believes the opposite is true. "As long as oil prices don't continue to fall, that will lead to stabilization."

Specifically, Bell points to the correlation of oil prices and earnings. "The fall in the oil price has been one of the main reasons that you have seen a fall in U.S. earnings."

"With the dollar also showing signs of stabilization," he continued, "we think that those two factors will be helpful by the end of the year. We expect earnings to be up mid-single digits."