Don't Think Oil Has No Floor

Oil's hit that level where there is demand, which is a reminder of something that Ken Powell, the great CEO of General Mills (GIS - commentary - Cramer's Take), told me last night: We aren't going to retrace the whole run of oil.

The $110 level coupled with the decline in gasoline that is coming is causing the retail gasoline dispensers to get nervous and come in and buy.

The oil companies are also unlikely to keep laying off their oil here because they don't believe it is going back to $90 here either.

The group is so oversold that you have to believe that the run in the big oils like Occidental Petroleum (OXY - commentary - Cramer's Take) and ConocoPhillips (COP - commentary - Cramer's Take), as well as the independents like Devon (DVN - commentary - Cramer's Take) -- even though it has nat gas, which is still plummeting -- and of course the drillers, can continue for more than yesterday afternoon and today.

I don't believe we can go right back up, because the Saudis are pumping a huge amount of oil, and we know demand slackens above $3.50 for gasoline.

But going right back down is going to require some more big oil finds and a sense that another large producer of oil can boost production besides the Saudis. If anyone sees that coming, please let me know.

At the time of publication, Cramer was long Devon Energy.

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