TheStreet’s Jim Cramer explores why despite a build up in inventories, oil went up Wednesday. He says the answer is that we’re now getting numbers from the EIA that January was a down month from the previous month. In other words, the linked month was actually down about 123,000 barrels. Cramer says that’s the beginning of what he regards as being a real bottom and he does not expect prices to go back up because we’re still about 1.2 million barrels above where we were last year at this time. But the slowing of the increase is occurring, he says, and then by this point next year you’re going to find that we actually are producing dramatically less and that’s why oil can put in a bottom. It doesn’t necessarily mean it’s going to rally because there’s oil everywhere, not just the United States, says Cramer.
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