June 1, 2016 – The Street
Cramer: Don't Bet Against Saudi Arabia on Oil Prices
By: Jim Cramer
You want to buy oil ahead of the Organization of Petroleum Exporting Countries meeting? You want to buy stocks because you think people want to buy oil ahead of the OPEC meeting? You hear that the OPEC ministers want the price up?
I say: "Where did you get that notion? Did the Saudis clue you in?" Don't look now, but there is no OPEC. There are a bunch of countries that want oil higher to pay their bills, and then there are the Saudis, who want oil lower because they don't want to encourage more U.S. production that will hurt their market share.
We know from the work RBN has done -- they are the go-to organization for this kind of information -- that there aren't a lot of shale plays that make money at these levels. But higher? The oil companies can sell futures to raise money to please their real masters: Wells Fargo (WFC), JPMorgan Chase (JPM) and Bank of America (BAC).
You think the Saudis don't know that? You think the Saudis want them to be able to make good on their debts? Think again.
Read the full story here: http://realmoney.thestreet.com/articles/06/01/2016/cramer-dont-bet-against-saudi-arabia-oil-prices
