Jim Cramer Says It’s a Supply and Demand Issue With Oil

TheStreet's Action Alerts PLUS Portfolio Manager Jim Cramer said he sees oil production coming close to equilibrium with supply and that should keep prices at around $50 a barrel. Cramer gives investors a quick review of what's happening globally with oil producers: China is producing 300,000 fewer barrels a day, the U.S. is producing one million fewer barrels a day, Iran is not adding as much capacity as many believe, Iraq is pumping a little more and Venezuela is not paying its' bills so companies like Schlumberger (SLB) - Get Report are not pumping as much. Cramer said, 'This is all about production cuts and an increase in demand.  You end up with a situation where if the Saudis can pump a few million more per day, oil is going to keep moving higher.' Cramer's price target on oil is $50 a barrel.

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