People might get angry at oil companies and government officials -- and even car companies -- in the hope that the anger will fester into something more and cause the price of oil to go down, Jim Cramer said on his "RealMoney" radio show Monday, but it doesn't look like oil is going to quit. The U.S. consumes the most oil on Earth, with China coming in second place. Yet, Massachusetts' governor is against the planned liquefied natural gas plant in that state, he said. In addition, Cramer said Nigeria, which is the fourth-largest producer of oil, has become much worse, with more workers getting captured and more destruction taking place. The companies that drill in Nigeria are going to pull out, he said, adding that Venezuela and Iran, which met last week, are trying to make us feel insecure about our oil supply. There has also been much hoopla over alternative energies, Cramer said. Although ethanol is at 50 cents a gallon, we can't have it, since the government is blocking it. Supply is the problem here, he said. Even though gasoline is at $3 a gallon, people continue to use it more and more and are cutting down everywhere else. Demand is not shrinking, he said.
Natural Gas Guzzle
Although the market is full of people who bet against the market, short-selling is a fairly difficult and risky practice, said Cramer. An example of where short-selling is backfiring right now is natural gas. Natural gas is en fuego today, as it has been for the last 10 days, he said. There are people who believed that natural gas would only go down because they thought that there was plenty in storage, but that notion is wrong, Cramer said. In fact, natural gas is difficult to store.