NEW YORK ( TheStreet) -- I was talking this morning with Jim Cramer about the rising U.S. crude price and which stocks might benefit from it.
It's critical to understand the rising price of WTI crude is not being driven by a single fundamental reason but many. First, there is the comparatively better outlook for the U.S. economy particularly in contrast to Europe, where their Brent oil benchmark has remained fairly flat priced at around $109 a barrel.
But also, it is about the better infrastructure that is beginning to have a more concrete effect in removing the enormous surplus of crude that has built up over the last two years in Cushing, Okla., and on the Gulf Coast.
So, much of the U.S. crude rally is more about the ability for WTI crude prices to "catch up" to more universal global prices, still more than $14 higher priced. For U.S. crude to again touch the $100/barrel barrier again, we'd need no more than a $2 rise in global crude prices combined with a $2 tightening in the differential between our WTI and European Brent prices.
I believe it's going to happen. And there are some very specific stocks you should be looking at to take advantage of that trend.
I discuss these stocks and more with Jim in the video above.
At the time of publication the author had positions in APC and HK.
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