NEW YORK (TheStreet) -- TheStreet's Jim Cramer talks oil and says we still don't have any cessation of supply, nor do we have a pickup in demand.

Cramer says people are betting that Vladimir Putin will come to the peace table, which would mean Ukraine is no longer an issue. This would in turn allow Europe to get restarted for growth, and Europe would then be able to take the oil that Russia would pump.

Cramer suggests investors watch Europe because the demand for oil must come from there. If Europe gets better, he says, then China could have more demand because 25% of exports from the world's most populous nation go to Europe.

Must Watch: Jim Cramer: Demand for Oil Is Going to Have to Come From Europe

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Cramer adds that if the U.S. has a cessation in supply, then oil can get into equilibrium. But he does not think it's ready to do that yet. He maintains that, on strength, investors can sell companies that are spending more than their cash flow because those companies probably would not make it through this period.

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