West Texas Intermediate crude oil prices surged Thursday on rumors Russia's energy minister is "willing to meet with OPEC members" on production cuts.
Reducing production would be a big boost to oil prices, which is so badly needed by so many different parties, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Stop Trading." However, getting confirmation on lower production is what's really needed, he added.
Saudi Arabia is an enormous producer of oil, and the country has been relatively quiet about its production plans. If the nation said it will cut production, oil prices can go up, he reasoned.
The capital expenditure cuts in the U.S. alone have been "shockingly down," Cramer added, noting 2015's drop of $93 billion and this year's expected drop of $58 billion. That could be enough to help stabilize oil prices because supply from North America is likely to decline.
The cuts in capital expenditures are hurting so many companies including U.S. Steel (X) - Get Report and Caterpillar (CAT) - Get Report while the energy companies are suffering from lower oil prices, Cramer said.
At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.