The release of the oil inventory number on Wednesday could offer investors a chance to buy oil stocks, Jim Cramer told viewers of his "Mad Money" TV show Friday. The oil inventory number will cause "considerable hoopla" because traders will be fixated on it. Cramer, however, called it a "contrary indicator." Despite the noise, it doesn't affect the price of oil, he said. Indeed, "if you go against it, you get your best trade of the week," said Cramer. The oil inventory number usually comes in around where short-term traders expect it and represents a domestic inventory number. If it is a little more than predicted, then the "world goes insane," said Cramer. "If it goes high, then oil prices plunge." So here's Cramer's game plan. If the number shows a big inventory build-up, you should be buying while everyone else is selling off oil stocks, he said. The caveat? If the oil inventories drop, take a pass and try again next week. A relatively safe oil stock is BP ( BP). A bigger play is Permian Basin Royalty Trust ( PBT). For something with more pop, try ConocoPhillips ( COP), an integrated balanced refiner with a natural gas focus is the choice. For a pick in the coastal drilling sector, CGG Veritas ( CGV), Smith International ( SII), FMC Tech ( FTI) and Oceaneering ( OII) are good buys.
Cramer: Forget Oil Inventories, Find the Bargains