Although it may seem like oil is oversold, Dennis Gartman says now is not the time to buy.
That’s tough to hear for energy bulls, especially after oil suffered its worst 3-day rout since August
But Gartman, author of The Gartman Letter and a CNBC Contributor, says oil is facing a bouillabaisse of negatives.
First and foremost, Gartman cites increased signs that the global economy is slowing. "You've got weakness in Europe, and now a poor jobs report," he says.
Also he reminds the desk that the US dollar is stronger, a bearish development for commodities broadly.
In addition, Gartman thinks supply is plentiful. "There's a whole lot of drilling going on," he says.
Beyond that, Gartman thinks the confusion and drama surrounding Chesapeake will send investors to the sidelines.
And -- as if all that wasn't bearish enough, Gartman also thinks a plan to raise margin requirements will also weigh on prices.