Jim Cramer's Stop Trading! Cheering Chevron

Cramer wouldn't sell Chevron (CVX Quote) despite Monday's Deutsche Bank downgrade, he said on CNBC's "Stop Trading!" segment.

Cramer said he is bullish on oil and the oil-companies trade as a group because of the action in exchange-traded funds and other factors. So he wouldn't sell Chevron, which he conceded is one of the less efficient operators in the industry, because it trades at just nine times earnings and pays a solid dividend.

Chevron has "the most room for improvement," Cramer said, and "a lot of untapped reserves" to boot. He said the stock, trading at $73 and change, has the most upside in the sector.

Cramer doubts that Nabors (NBR Quote) will get a leveraged buyout despite the incessant rumors to that effect on Wall Street. Cramer said the oil services firm has become "a rumor stock" now that CEO Gene Isenberg has said he's fed up with its low valuation. But Cramer noted that Nabors posted a weak quarter, which means the company may not be in position to get the premium it wants after a recent runup.