The recent rebound in oil should not be seen as a sign that the price has reached a bottom, influential investor Dennis Gartman told CNBC Tuesday, warning that $20 per barrel was “still possible.”
“I actually doubt that we have (hit a bottom) what we’ve seen in the past week and a half or two weeks is a substantive rally from the lows but what is depressive to me is the fact that the carrying charge has not done what one would want to see the carrying charge do in a rally,” Gartman, the author of the “Gartman Letter” told CNBC’s “Worldwide Exchange” Tuesday.
“We’ve seen the market continue to have a large contango (where people are willing to pay more for a commodity at some point in the future than the actual expected price of the commodity) and crude continues to bid for storage,” Gartman said.
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