What Jim Cramer Is Watching in Oil Next Week

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Let's take a look at oil this week.

The U.S. Energy Department reported a surprise decrease in domestic crude stocks on Thursday, and the International Energy Agency said global demand could return in the second half of the year as economies recovery and OPEC production cuts take hold.

The IEA said Thursday in its monthly report for May that demand was a little stronger than expected but still projected global demand to decline by 21.5 million barrels a day. Global oil supplies were projected to fall by 12 million barrels a day, or about 12%, during May.

“We see early signs of a gradual rebalancing of oil markets. It is still gradual and it is still fragile,” said Fatih Birol, the IEA’s executive director.

He told TheStreet's Katherine Ross on Thursday, "You have to get out of everything in oil....it will take a long time before supply gets in line with demand," Cramer said. 

While Cramer said oil stocks are overvalued, he said that if you have to be in any oil name, choose Chevron.

So, let's look ahead to next week. 

Cramer said that he's eyeing oil going into next week. 

"I want to see if oil goes above $30," he told Ross over on StreetLightning Friday morning.

You can follow Jim Cramer and Katherine Ross on Twitter at @JimCramer and @byKatherineRoss. Read more from Katherine Ross here.

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