RealMoney Radio: The Politics of Oil

Cramer says geopolitical tensions will keep energy prices pushing higher.
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"What goes on in other parts of the world does affect the price of tea in China," Jim Cramer told his

"RealMoney" radio show listeners Monday, referring specifically to the effect that global moves have on oil prices.

Cramer said that crude prices are affected by two things: supply and demand threats, and geopolitical news.

This is why listeners should have an oil company in their portfolios, he said, noting that these geopolitical threats are not going away and will only push energy prices higher.

For example, he cited growing tensions between the U.S. and Iran, tapering oil output from Iraq and a

New York Times

story that said Saudi Arabia could be running out of oil.

Even with all oil prices moving higher, drilling stocks were down Monday. Cramer said that this was an opportunity to buy. He told listeners to take a closer look at

Baker Hughes

(BHI)

, a company that he said had the single best quarter of all the drillers.

Cramer said that now is the time to think about investing in Peru again now that Alan Garcia has beaten the leftists in his country's runoff election.

Garcia likes Wall Street and capitalism, Cramer said, adding that this could mean things are looking up in Latin America for U.S. business interests.

He told listeners to look into

America Movil

(AMX) - Get Report

as a play on this new, capitalist-friendly trend in Peru.

To see the most recent edition of The RealMoney Radio Recap in its entirety, please click here. This recap is published every day around 3 p.m. ET.

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