When one oil executive says oil's on its way up, you should bet it's about to do the exact opposite, according to Jim Cramer.
TheStreet's cofounder characterizedContinental Resources (CLR) - Get Report chairman and CEO Harold Hamm as the "ultimate oil contra-indicator" Friday, following the oil magnate's comments on CNBC Thursday that he is increasing his 2016 forecast for U.S. crude by 20%. He upped his prediction to $69 to $72 per barrel by the end of the year from $60.
According to Cramer, the exec's prediction holds no water. In fact, just the opposite.
"There he is again on CNBC, he loves coming on TV, talking about how oil is at an inflexion point," he said while at the New York Stock Exchange Friday morning. "Well, he's been saying this -- at $80, he said it was going to $100. There has been no level that he hasn't liked oil, so the fact that he came out and said that it's going to $60, $70, that was very bearish for me, because he's been a contra-indicator."
While Cramer conceded that Hamm has good properties in Oklahoma, he said his properties in the Bakken (an oil field in Montana and North Dakota) are too pricey.
"Hal's been a guy you bet against, unfortunately," Cramer said. "He's a very nice man, I've spent a lot of time with him. I think he's too bullish."
U.S. oil prices fell below $50 a barrel Friday as investors braced for a U.S. rig count, due at 1:00 p.m. ET, and as the dollar strengthened.
Cramer, separately, pointed out he believes that until oil stabilizes, the markets won't settle down, either.
"Here's the issue: the Baker Hughes (BHI) rig count comes out today and if it shows any sort of increase in rigs then oil could drop another dollar," he wrote in a piece for RealMoney Friday. "So, my suggestion is that even though the market looks like it is stabilizing, it really can't unless oil stabilizes."