There is no correlation between the Standard & Poor's 500 stock index and oil prices going down right now due to an equilibrium between oil supply and demand, TheStreet's Jim Cramer said Monday.
He noted Real Money did a comprehensive report on what happens when the price of oil drops 6% on any given day and Cramer said there was absolutely no correction between the S&P index and oil going down over a two-week period. "So those of you who are selling [stocks] because of oil, look at what happened," he said. "It didn't make any sense."
Cramer said oil has tremendous demand that it didn't have a year ago and oil supply in the U.S. is dropping at literally the rate of demand increases -- about a 1 million droppage versus about a 1.2 million increase. Therefore, "Oil is at equilibrium between $38 and $40, which is why it didn't get crushed."
U.S. oil prices fell 1.4% to $39.78 per barrel on Monday after members of the Organization of Petroleum Exporting Countries and others didn't reach an agreement at meetings in Doha, Qatar, on Sunday to cut or cap oil production to help boost oil prices. The S&P 500, meanwhile, increased two-thirds of a percentage point.