There's No End in Sight for Oil Players

Forget the Fed. What matters is that oil is going higher. Think about this, and think about it hard: How could a commodity that has doubled in value be in short supply? How could inventories be low and prices high?

Simple: Supply can't meet demand.

The fact that supply can't meet demand at $93 a barrel means three things:

1. Any company that has oil is worth more than it was a week ago.

2. Rates are going much higher for the drillers -- go buy Transocean (RIG - commentary - Cramer's Take).

3. The estimates are all too low for ConocoPhillips (COP - commentary - Cramer's Take) and Chevron (CVX - commentary - Cramer's Take) and Marathon Oil (MRO - commentary - Cramer's Take) for next year.

Excuse me for calling out the oil bears again, but this group is not going to be stopping here because there is no other commodity I have ever seen where over a two-year period we have not seen supply rise to meet demand.

I have never been one to trade off these numbers. That's always been a ridiculous trade. But the fact that oil spiked huge and nothing came to the market is monumental.

These stocks are not down on the upside. Go with the biggest buybacks and the best drilling records and the offshore drillers like RIG.

I still can't believe that we didn't build inventories.

Extraordinary.

At the time of publication, Cramer was long Transocean.

ALL JIM CRAMER BLOG ENTRIES | POST A COMMENT | READ COMMENTS  

---

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. Watch Cramer on "Mad Money" weeknights on CNBC. Click here to order Cramer's latest book, "Mad Money: Watch TV, Get Rich," click here to order his book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here.

TheStreet.com has a revenue-sharing relationship with Traders' Library under which it receives a portion of the revenue from Traders' Library purchases by customers directed there from TheStreet.com.