A portion of Saudi Aramco may not go public until late next year. But when it does, it could stunt price growth in crude oil, Dennis Gartman said Monday.
Saudi Aramco CEO Amin Nasser told CNBC on Sunday his plan to take part of the world’s largest oil company public remains on track for the second half of 2018. Recent reports have suggested the offering may be delayed into 2019 or even shelved.
When a portion of it does go public, it’s going to be “very difficult” for U.S. West Texas Intermediate (WTI) crude to break $55 a barrel and “tough” to push Brent crude past $60 per barrel, Gartman told CNBC’s “Fast Money.”
On Monday, WTI traded at $51.90 and Brent crude traded at $57.33.
“So I think yes, the IPO when it comes — it is a long way away, it’s the next half of next year — but I think that probably shall mark a very important high for the crude oil market for many years into the future,” said Gartman, editor and publisher of The Gartman Letter.
If Gartman was forced to invest in oil, he would choose refiners rather than the producers.
“If you have to have something in the oil business, if you want to own oil in some manner, own the refiners,” he said. “I think that’s a better trade.”