Jim Cramer's short-term outlook for oil stocks is bearish, but in the long term, he's bullish, he said Thursday on his "RealMoney" radio show .

Cramer believes the price of oil is headed to $50 a barrel from Thursday afternoon's price of about $57.80. Cramer said Europe has flooded the U.S. with crude and heating oil following hurricanes Katrina and Rita.

Additionally, temperatures have remained relatively warm in the East, and production and refining capacity in the Gulf of Mexico is coming back online, he said.

Also, the political climate is such that it will be difficult for oil companies to raise dividends or implement buybacks, Cramer said.

Long term, however, we aren't finding enough oil to meet demand, said Cramer. He believes oil will be in short supply for eight or nine years until alternatives are developed enough to become viable.

Cramer has pared back his oil stocks and plans to hold until oil goes lower. Then he will consider buying again. For now, though, it's too dangerous to buy even for a bounce, he said.

Stump Cramer

In his weekly "Stump Cramer" segment, where listeners try to trip up Cramer with stocks they think he hasn't heard of, Cramer was stumped by Landec ( LNDC), MainSource Financial ( MSFG), Prana Biotechnology ( PRAN), Anadys Pharmaceuticals ( ANDS) and HMS Holding ( HMSY).

Cramer has casual knowledge of Neoware Systems ( NWRE), he said.

Cramer's Callers

Cramer said Nice Systems ( NICE) reported a "beautiful" quarter Wednesday, but investors were hoping for more upside guidance. He said investors were using the "disappointment" as an excuse to take profits. However, he sees nothing wrong with the fundamentals and wants to own the stock.

A caller asked if one should be wary of Zumiez ( ZUMZ), which announced an expanded secondary offering Wednesday that included sales of shares by insiders. Cramer said he would normally be perturbed by the situation but that he checked with some of his institutional sources, and they are not concerned, he said. Cramer believes the offering will be easily absorbed at the price of $35.60 and that the stock is now headed higher.

Cramer believes copper prices have peaked, and therefore the stock of Phelps Dodge ( PD) has peaked. The one copper stock Cramer still likes is Southern Copper ( PCU) because he likes the Peruvian copper market.

Of Chesapeake Energy ( CHK), Cramer said the stock is a hold. He would take a hard look at Chesapeake if it fell to about $25, he said. Chesapeake traded at $27 late Thursday.

Cramer believes Yahoo! ( YHOO) is going to "break out to the $40s." The stock was at $38.55 in late Thursday trading.

Commenting on iRobot ( IRBT), a stock Cramer recommended on his "Mad Money" TV show Wednesday, Cramer said the stock opened Thursday at about the price where he thought it would go over several days. Don't chase it, he said.

Finally, Cramer said because he believes the selloff in oil is not over, chemical companies such as Dow Chemical ( DOW), DuPont ( DD) and PPG Industries ( PPG) are going higher.
At the time of publication, Cramer was long PPG Industries and Yahoo!.

James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here. Listen to Cramer's RealMoney Radio show on your computer; just click here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict."