TheStreet’s Jim Cramer says the market is being controlled by 3 bears: Russia, U.S. oil companies and Petrobras. With regard to Russia, Cramer says it’s all about Ukraine. If the Russia-Ukraine issue gets resolved then you’ll see a lift in oil. We’re not trading Russia here, he says, but understand it’s bad for the market. The second bear, U.S. oil companies, are a worry because they are strapped, says Cramer. Some are overstretched and can go belly up. For instance, he says Repsol should’ve waited to buy Talisman because Talisman will likely be lower in six months. He says, let the marginal players go out of business and the numbers be cut and use rallies like we’re having today in some of these small oil companies to sell, not to buy. Lastly, he says the third bear is probably the worst: Petrobras. Cramer says it’s the most exposed oil company in the world. It’s largely funded by foreign money and the mutual funds that bought the bonds are going to take a big hit because Petrobras which is 60% owned by Brazil is going to have to refinance. Cramer says these are the three known worries that haven’t developed into full-blown crises yet. So brace yourselves, he warns, because it is unlikely we’ll come out of all three unscathed.
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