RealMoney Radio Recap: Own Oil

Oil is going higher, Jim Cramer said on his "RealMoney" radio show Tuesday.

Every time there is a glitch, oil goes up and continues to stay up, even when the bad news, which caused it to go up, goes away, he said.

BP's (BP Quote) Alaskan oil field closure has primarily hit the West Coast, and refiners there are scrambling for crude oil.

Out of all the refiners, Tesoro (TSO Quote) is getting hurt there the most, Cramer said. The stock is up big right now. Thus, he believes that it is a good opportunity to get out of Tesoro now.

The Strategic Petroleum Reserve is not going to solve the country's energy problems, as some people may believe, Cramer said. Yet, we still don't drill offshore and continue to rely on unstable allies for oil.

A lot of people also believe that the way to make things better is liquefied natural gas (LNG), but we can't manage to build LNG terminals. If these terminals do get built Cheniere Energy (LNG Quote) is the winner in this group, Cramer said.

"The nation's energy policy is a complete mess," he said. "Once we get to $80 a barrel, there will be more misplaced outrage and calls for a solution."

After this, people will accept the new price, Cramer predicted. That is, until it goes even higher and reaches $100, he said.

The lessons to be learned here is that we should spend a little less time worrying about whether the Fed will raise interest rates and that people in Washington should care more about this oil problem.

Although all the big firms on Wall Street believe that oil is going down, they are wrong, Cramer said. "Own an oil stock," he said.