Asia's Resurgence Fuels the Oil Trade

The oil trade continues to work. It doesn't hurt that oil finished at a five-month high today! The rig count may be low, the oil stocks' earnings hideous, as we know from ConocoPhillips (COP - commentary - Cramer's Take) and Chevron (CVX - commentary - Cramer's Take) and ExxonMobil (XOM - commentary - Cramer's Take). The drillers' top-line numbers may be sad, but it is all about a perceived bottom and how oil is so cheap relative to the other comeback commodities.

Could this be a U.S. bias? We keep looking at our inventories, which are bloated beyond belief. We keep looking at the natural gas price, which seems to never get out of its own way.

But any industrial comeback isn't in any of these numbers, and we know we are going to see one -- all of the data points to it.

I keep pointing out this move because it is like the steel move and the beta trade I alluded to this morning with my article about how the foods and drugs can't get out of their own way.

People want to own beta, and nothing has beta like Transocean (RIG - commentary - Cramer's Take), Schlumberger (SLB - commentary - Cramer's Take), Apache (APA - commentary - Cramer's Take), Anadarko (APC - commentary - Cramer's Take), Southwestern (SWN - commentary - Cramer's Take)and the like. The earnings have meant nothing. Nothing at all. Witness the dismal numbers from Chevron. What an awful quarter! And no dividend boost (as opposed to the dividend boost we got earlier from huge laggard Procter & Gamble (PG - commentary - Cramer's Take)).

These stocks are so strong -- as is Nordic American Tanker (NAT - commentary - Cramer's Take), which I think could have explosive earnings when it reports tomorrow, and maybe even a dividend boost -- that I pity the people shorting the Oil Services HOLDRs (OIH - commentary - Cramer's Take) and shorting the nat gas stocks.

I still feel it is not too late to buy SLB. I also still think that CVX, COP and BP (BP - commentary - Cramer's Take) are must-buys.

People are spending too much time looking at our ailing economy and not enough time looking at this remarkable turn in Asia, which seems so explosive that it cannot be ignored.

This group goes higher as oil breaks out to $60 and nat gas returns to $4.

At the time of publication, Cramer was long BP, Chevron and ConocoPhillips.

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