Quick Take: Cramer: Gas Could Hit $4.25
NEW YORK ( TheStreet) -- As crude oil has raged higher, are consumers going to start feeling the pinch in their wallets? TheStreet's Jim Cramer tells Joe Deaux that gasoline is starting to play catch-up and could go to $4.25 per gallon.
Cramer was quick to point out that even as pump prices have steadily rose, the U.S. has become a much larger exporter of gasoline.
Cramer said that if the U.S. kept more gasoline in our country, then the increased supply likely would pressure prices lower.
Cramer also said that there is a new buyer in the crude market: fund managers. Cramer said that oil has been a better hedge against inflation and that is was clear from the Delivering Alpha Conference that many believe inflation will rage higher.As more financial institutions have become big buyers of crude, they have helped to create artificially high oil prices. This leaves gasoline prices playing catch-up and in the end results in higher prices for consumers. Cramer concluded by saying gasoline could run as high as $4.25 before topping out and that it would probably cost only $3.50 if it weren't for all of the gas exports. -- Written by Bret Kenwell in Petoskey, Mich. . Follow @BretKenwell
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