Jim Cramer: Oil Is Going Higher

Oil is going higher due to increasing Chinese and U.S. demand with tightening supply, said TheStreet's Jim Cramer. He said there is also too much pessimism surrounding the oil patch right now and many of the companies expected to fail will in fact survive. Cramer said, 'At $50 a barrel you can live to play again. Freeport-McMoRan FCX has been one of the great horses, Devon DVN has been remarkable, Exxon XOM and Chevron CVX are fantastic, their balance sheets were never challenged.'

At the time of publication, Jim Cramer's charitable trust Action Alerts PLUS held no positions in stocks mentioned.