Oil is taking out $70 a barrel and that means that gas is going to $3.25 to $3.60, Jim Cramer said on his "RealMoney" radio show Monday.
He said this is true because demand is not going anywhere, and it is getting harder and harder to find oil. "We'll be lucky if we don't see oil go to $80," he said. For example, Cramer said that Saudi Arabia has twice as many rigs as it did five years ago but that it's not producing as much oil. Plus, pipelines are being destroyed in oil-producing nations all over the world, pushing prices up even higher. Pipeline destruction is going to be an ongoing problem, Cramer said, and only Oregon Steel(OS Quote) makes the steel used in oil pipelines. Cramer said that the stock is dirt cheap, even though it is up a couple of dollars, and that it is an ongoing play on higher oil prices. Newspaper reports over the weekend said that Wal-Mart(WMT Quote) is going to stop selling guns at about 1,000 of its stores, which Cramer pointed out is a huge move to make for the largest seller of hunting firearms. In those locations, the company will replace its rifles with home-exercise equipment, and Cramer believes that this is more evidence that baby boomers trying to stay fit is a way to make money.
He said that Life Time Fitness(LTM Quote), the only publicly traded play on gym equipment and personal training, is the stock to buy to make money on this trend.
"It may be a great way to play the fact that Wal-Mart thinks people want to get more fit," he said.
But the retailer aside, Cramer believes that it's time to start thinking of alcohol, tobacco and firearms as something in which you can invest.
- Loading Comments...
- Loading Comments...
Featured Photo Galleries
| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 10,246.97 | 1,093.01 | 2,151.08 | 34.82 |
Oil *
77.27
|
|
UP
20.03
|
DOWN
0.06
|
DOWN
2.98
|
DOWN
0.04
|
10 Yr
3.48%
SPDR Gold
108.39
|
|
+0.20%
|
-0.01%
|
-0.14%
|
-0.11%
|
Data delayed 20 minutes |














