TheStreet's Jim Cramer said Friday a rally based on rising oil prices can be sustained because it relieves the credit crisis on both banks and oil companies.

Cramer said Friday's rally is very different from a rally or selloff based on what's happening in European markets. On Thursday, U.S. stocks fell after declines in Europe based on the impact a stronger euro would have on European companies. But Cramer said U.S. investors missed the boat.

"A soaring euro is bad for European stocks, it's good for our PepsiCos (PEP) , our Procter & Gambles (PG) , so you're selling for the wrong reason. I often talk about using a market-wide selloff to buy good, domestic stocks," said Cramer.

Something else on Cramer's mind is the impact higher oil prices could have on the Federal Reserve's decision to raise rates again. "James Bullard, who is the leading hawk, had said if oil goes lower, he was going to be on hold. Oil going up makes it easier for the Fed to raise. I don't want the Fed to raise because I think wages are still very much under control," Cramer asserted.

While Cramer said any potential rate increase wouldn't happen next week at the Fed's March 15-16 meeting, he said it's still too early. As for whether the latest oil price increase is sustainable, Cramer said it may be because "Goldman Sachs, which had been the biggest bear, raised its floor for where oil might trade. It was significant. When the biggest bear breaks ranks, I always pay attention."

At the time of publication, Cramer's Action Alerts PLUS had a position in PEP.

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