NEW YORK ( TheStreet) -- As oil continues to surge higher, now well over $100 a barrel, many investors are wondering what to make of it. With thoughts on how to participate are the TheStreet's Jim Cramer and Joe Deaux
"It's wild," Cramer began, citing the huge move from $90, where it seems as if oil had been trading at for ages.
Once oil took out a few technical levels to the upside, the shorts covered and the direction has been up ever since, with oil now trading near $105.
Along with the technicals, Cramer pointed to Dan Dicker, who's been spot on about oil after trading it for more than 25 years. Dicker says that the hedge funds want to own a commodity and with the poor performance of grains, corn and metals -- particularly gold -- they have turned to oil.
"It's very crowded," Cramer added.
So how do you play it? Through the oil companies, of course.
(EOG - Get Report)
Anadarko Petroleum Corp.
(APC - Get Report)
Occidental Petroleum Corp.
will all benefit from the rising price of oil, Cramer said.
He added that
(CLR - Get Report)
will also do well because of the Bakken.
Cramer observed that any company taking oil from U.S. soil should do well, citing the huge margins from selling in the international markets. "They are coining money here," he said.
On the other hand, while this might be a bonanza for the domestic oil companies, it's the not the same story for the drillers, he warned. Video: http://www.thestreet.com/video/11975907/cramer-own-independent-oil-names.html