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 Resources (EOG), Anadarko Petroleum Corp. (APC) and Occidental Petroleum Corp. (OXY) will all benefit from the rising price of oil, Cramer said. He added that Continental Resources (CLR) 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
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV