Oil is taking a spill, with crude prices falling almost 4% on Tuesday. What once seemed like a done deal on a production cap by the Organization of the Petroleum Exporting Countries now seems like a long shot.
An OPEC production cap would lower supply and boost prices, helping a number of nations that depend on oil production for revenue. Tuesday's decline is just the first day, however, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Stop Trading" segment.
Investors need to be careful, he said. "You don't jump in on day one of the decline in oil."
While there is still chatter of a deal being reached, Cramer's not buying it. He views it as unlikely, but said OPEC members may keep the talks going for some time in order to help keep oil prices up.
It's too bad, too, because so many oil-related stocks had rallied so far. They will give up their gains if oil continues lower, Cramer concluded.