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Dennis Gartman: Term Structure Bearish for Oil
04 Apr 2012 EDT - CNBC.com

If you trade energy, trade cautiously. Commodities investor Dennis Gartman tells us oil prices are probably going lower.“I think you have to be very careful,” he says. “If it wasn’t for the philosophical problems of the Middle East – crude would be trading $80. The term structure says supply is much stronger than demand."By term structure, Gartman is referring to the contango in the futures market.

Of course there are ‘philosophical problems’ in the Middle East. But even then, Gartman thinks the market is getting comfortable with the rhetoric. And with the US dollar getting stronger he tells us, “I think crude is going to head under $100 with not too much difficulty.”And if you’re a trader wondering about gold’s next move, Gartman tells us “after re-reading the FOMC minutes, anybody who has been buying gold is in a difficult position.”

*It’s worth noting Gartman is making a short-term trading call.

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Trader disclosure: On Apr 4, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Karen Finerman is long AAPL; Karen Finerman is short APPL CALLS; Karen Finerman is long BAC; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long HPQ; Karen Finerman is long RIMM; Karen Finerman is long GRPN PUTS; Karen Finerman is long SPY; Karen Finerman is long IWM; Karen Finerman is long MDY; Pete Najarian is long AAPL CALLS; Pete Najarian is long AAPL; Pete Najarian is long BAC CALLS; Pete Najarian is long C; Pete Najarian is long JPM CALLS; Pete Najarian is long MS CALLS; Pete Najarian is long INTC; Pete Najarian is long YHOO; Pete Najarian is long SBUX CALLS; Pete Najarian is long COP; Pete Najarian is long PEP; Pete Najarian is long HPQ; Pete Najarian is long AIG CALLS; Pete Najarian is long TFX CALLS; Pete Najarian is long SCCO CALLS; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long BTU; Guy Adami is long NUE; Tim Seymour is long BAC; Tim Seymour is long INTC; Tim Seymour is long YHOO; Tim Seymour is long CSCO; Tim Seymour is long WMT

For Mike KhouwNothing to Disclose

For Doug KassKass Owns IFFKass Owns PEPKass Owns PGKass Owns CLXKass Owns CL

Dennis GartmanPending

CNBC.com with wires.

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