Gartman Says New Sources of Supply and Low Demand to Blame for Low Oil

Usually when there is trouble in the Middle East, oil prices spike. However, despite recent airstrikes on oil refineries in Syria, that wasn’t the case Thursday. Crude held steady in choppy trading, and Dennis Gartman said the reason for the muted reaction is twofold.
“We are, in fact, creating a lot more, finding a lot more, producing a lot more crude oil here in the United States than anyone would have guessed a mere two years ago,” Gartman, editor and publisher of “The Gartman Letter” said in an interview with “Closing Bell.”
In addition, he said, demand for gasoline is down and that had been the real product driving prices to the upside.
“Demand is falling not because the economy is weakening but because we’re simply learning how to use our cars better … and we’re doing more and more of our shopping online.”

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza