TheStreet’s Jim Cramer says oil could revisit the $52 level. Cramer says energy investor Boone Pickens has taught him that oil is a 2-sided coin: there’s supply and there’s demand. While Cramer believes there’s way too much supply, Pickens tells him it’s less about oversupply and more about weak global demand. But with the U.S. expected to produce enough oil next year to make about 10 million barrels per day and with weak demand from Europe and China beginning to weaken, Cramer says it’s very hard to envision oil going back to the $70s and $80s. Boone believes it’ll go to $80-$90 by the end of next year. But Cramer says it’s difficult to see a dramatic decline in the rig count or to see less production. As an example, Cramer points to Continental Resources which is cutting back yet still doing double digit growth. So he advises investors to take a good look at supply and demand before getting too excited about oil going higher.
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