There he was on CNBC's Fast Money segment today, on a day the price of oil moved over four percent by more than $3.00 a barrel to over $72/bbl.
To paraphrase Mr. Gartman, "when I don't understand what is
happening, I get out the market."
Yes, according to the Energy Information Administration, inventories of oil dropped by some six
million barrels this past week. What wasn't generally discussed was that this was a programmed drawdown of bulging oil inventories which have reached levels this year not experienced since 1991.
Perhaps Mr. Gartman could answer the following question: If you were
an adviser to the finance ministries to three of the richest OPEC
oil producers -- say, Saudi Arabia, Kuwait and the United Arab Emirates,
what policies would you recommend to them to capitalize on their
inherent strengths permitting them to maximize their earnings from the one commodity -- oil -- on which their economy is dependent?
Given certain realities perhaps you would recommend the following program to them:
- Each of your economies are almost exclusively dependent on your production and sales of oil to buyers worldwide.
'sovereign wealth funds.'
What's that you say -- it's a good idea? Sorry didn't quite get that. Did you
say that is what has been happening all along??