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Gartman: Oil’s not going above $55 for years, and here’s why

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Oil’s struggles continue and according to one expert, investors shouldn’t expect the commodity to break through $55 for a few years.

The problem lies with the oil glut as supply continues to outpace demand. Despite recent optimism around talks between Russia and Saudi Arabia that could result in reduced output, Dennis Gartman, editor of The Gartman Letter, doesn’t see the supply issue easing.

Gartman’s main focus has been on the oil futures curve, and that the contango has been widening as of late. Contango is the difference between oil contracted for near-term delivery and crude slated for delivery further in the future.

“There will be no freeze of any consequence,” Gartman said Tuesday on CNBC’s “Futures Now.” “The contangos continue to widen, which tells you that there is an abundance of supply in the market. As long as the contangos continue to widen, as crude oil bids for storage, prices are going to head lower.” – READ MORE

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