Crude oil prices plunged Thursday, with West Texas Intermediate falling to $32.12 per barrel. However, oil prices have since turned positive on the day, currently trading above $34 per barrel.
There's "way too much oil," TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Squawk on the Street."
Cramer found it interesting that oil prices are finding support near their December 2008 levels, even if that support is only temporary.
What should stop prices from falling to multi-decade lows? Oil prices were in the $20s from 2000-2003, and below $20 per barrel from 1998 to 2000, he pointed out.
"We did have tremendous oversupply then, too, more than we have oversupply now," Cramer said.
Today, however, according to his recent conversation with oil tycoon T. Boone Pickens on CNBC's "Mad Money" show, the current supply-demand imbalance is off by only about one million barrels per day.
That's a far cry from where the supply-demand imbalance was in previous years, although Cramer acknowledged that lower prices are in the realm of possibilities. For his part, Pickens believes oil prices are close to a bottom, and made the case for why oil could return to $70 per barrel by year end.