NEW YORK (TheStreet) -- TheStreet's Jim Cramer discusses oil prices and oil stocks and explains why he thinks a supply correction would not occur until 2016.
Cramer says to forget about near-term supply and demand, and to instead think about next year. He says it will take that long because in 2015, a lot of oil from the Gulf of Mexico is coming on even while companies try to ratchet back. Cramer adds the amount of oil coming from the Permian Basin is going to be very difficult to cut back on because so much infrastructure has been built.
He thinks the supply side is going to continue to overwhelm the demand side. Cramer notes a lot of people are worried about demand, particularly from Europe, but he thinks demand will pick up in China and notes it is already picking up in the U.S.
But in the end, Cramer says, the supply side is the key, and the supply side is not being curtailed in 2015. It will be a 2016 issue before you see it.