Oil, the main generator of energy on the planet, has the power to swing the market, said Aaron Task on Jim Cramer's
Cramer had called oil the one product that could swing the market at will on his June 5 show, saying that oil also determines whether we're having a good or bad day in the market.
It's a good day when oil is down, and a bad day when it is up, he had said, adding that the threats to crude's supply and demand, and geopolitical news are two factors that affect oil's price.
Iran is threatening to stop its supply of oil to the U.S., and there are stories that Iraq's pumping ability is so weak it can't even supply oil to its own people Cramer had said.And rumor has it that Saudi Arabia is running out of oil, he had added. There is a lesson here: The current oil market is the reason you should get into oil stocks, Cramer had said. Even though oil is up, oil drillers are down huge. Task welcomed Chris Edmonds, the managing director of research at Pritchard Capital and contributing writer to RealMoney.com, onto the show. Task asked for Edmonds' thoughts on whether the U.S. is on its way to getting decent oil production from Iraq. U.S. is a ways from meeting full demand because of infrastructure issues, but Iraq is slowly coming back to the positive part of the ledger, Edmonds responded. Iran is threatening to stall exports if the dispute over its nuclear activity heats up, Task said. "What is your sense of these threats from Iran?" he asked. "I think we have to take them seriously," Edmonds said. At end if the day, Iran is trying to make a name for itself and protect its own interests, he said, adding that Iran will probably be a volatile situation during the summer.