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I keep forgetting that Jim Cramer (Kramer as I like to call him) has been back on the oil bandwagon in a big way. His radio show on Monday, April 17th begins with a great summary explaining why oil is so hot. (Click here for the archives and brose/search for the April 17, 2006 show). In particular, he reminds us that supplies are tight. He also scoffs at those who have been expecting oil to come back down to $50 a barrell any day now. Apparently, even the President has been crossing his fingers. But alas, oil just keeps going up...and carrying the rest of the commodity complex with it.
And here is something else to consider...even as oil hits new highs, the economy continues to hum along. The stock market still only seems to occassionally care about these high prices. For those bears looking for a sharp correction in the market, it seems it will take one serious jolt to shake a lot of shares from the weaker hands. Now imagine what might happen if oil goes back down to $65, or even $60...!?!?
Be careful out there!