RealMoney Radio: Oil Going to $100?

Cramer says that geopolitical tensions are forcing oil higher.
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We have lots of reasons for oil to go much higher, and not many reasons for it to go lower, said Jim Cramer on his

"RealMoney" radio show Tuesday, identifying geopolitical tensions around the world that are keeping crude prices high.

Iran could stop shipping oil to us, and that's a big deal given that the country is the No. 4 producer, said Cramer; and hurricane season is upon us, but plenty of production capacity is still offline in the Gulf of Mexico.

Nigerian rebels have cut production in that country by 25%; and even though OPEC pledges to keep output levels up, Venezuela might cut back, he said.

But Cramer believes that two entities are clearly not betting that oil prices are going lower anytime soon:

Goldman Sachs

(GS) - Get Report

and Richard Kinder, chief executive at the energy infrastructure provider

Kinder Morgan

(KMI) - Get Report

.

The brokerage has said that oil could hit $100 a barrel and beyond, Cramer said. And Richard Kinder is taking his own company private. Cramer said that listeners who own Kinder Morgan stock might want to hold it because he believes that it could go higher.

He added that supply isn't the only thing keeping oil prices high. "Don't be fooled," he said. "When they say that inventory levels are high, it's because we don't have a lot of storage."

The secretary of Treasury is typically a sexy job, unless John Snow's at the helm, Cramer said, adding that it's tough for him to be too harsh a judge of Snow.

"He's a terrific avuncular guy," he said, adding that Snow is the sort of man that everyone at the family barbecue wants to give more coleslaw to.

However, Cramer said that Snow was never a "promoter and an operator," which a good treasury secretary needs to be. However, Cramer believes that the new hire, Goldman Sachs chief executive Hank Paulson, will be the mover and shaker that the Treasury needs.

Paulson is an engaging figure with international experience, Cramer said, and he could be the big win that President Bush needs.

Whether you're a democrat or a republican, Cramer said that it's in everyone's interest that the economy stays healthy, adding that he has high hopes for Paulson.

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