Friday, November 21, 2014

Dennis Gartman: Oil Will Fall Sharply Lower Than Anyone Ever Imagined

HardAssetsInvestor: Is the U.S. oil boom the biggest reason oil has plunged during these last several months?
Dennis Gartman: I would say 40 percent of the reason prices have fallen is production in the U.S.; 30 percent is the dissention and the problems with OPEC; and the rest is weaker-than-expected demand globally. Rising U.S. production is not the only reason oil prices are down, but it’s probably one of the largest reasons.
HAI: U.S. oil production hit 9 million barrels per day earlier this month. How high do you think it can go?
Gartman: We’re going to be at 9.5 million barrels per day by the middle of January because there's just so much stuff still coming on stream. We’ll be 9.5 early next year and we’ll be at 10 by midyear next year. After that, you may get some slowing of the increase in production.  (more)

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