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Dennis Gartman turns a little bullish on oil, thinks crude could hit $55

  • Gartman said the term structure of oil is "yelling" and "screaming" at him that something is happening.
  • The one thing that can keep people from being too bullish on the oil market is there are many uncompleted wells out there, he said.

Crude oil could hit $55 a barrel, commodities king Dennis Gartman said.

Gartman had been bearish on oil for a long period of time, he said, thinking it would be difficult for crude oil to get through $55. Now, he said, the term structure of oil is "yelling" and "screaming" at him that something is happening.

That something is demand increasing and supply decreasing, Gartman said Monday on CNBC's "Fast Money."

"So for the first time in a long period of time, I think this is sustainable," he said. "This is not an impetuous rally. This, I think is a fundamentally driven rally. The futures are telling you something has changed dramatically in that market. There's no question."

U.S. crude hit its best closing price in five months and Brent crude oil hit a new 2017 high on Monday.

The one thing that can keep people from being too bullish on the oil market is there are many uncompleted wells out there, Gartman said. If crude hits $55, many of those wells will be turned on for production.

"At 55, every E&P producer in the Permian [Basin] and the Eagle Ford will be bringing those ducks, getting them in a row, bringing those ducks back online and producing crude," he said. "If you get through 55, the game has truly changed."