The “Mad Money” host pointed to an April conference call at oil giant Schlumberger led by its CEO, Paal Kibsgaard. On the call, Kibsgaard said that supply and demand were in balance, but that global crude stocks were still below the five-year average.
The CEO argued that these data signaled that oil prices could move higher soon, which led to the surge higher that occurred in early May, Cramer said, adding that prices could still climb.
“Look, without significant new exploration the price of oil will keep drifting higher,” Cramer said. “So if you get any sort of pullback like we got late this afternoon, I recommend using it to build up some oil exposure.”
His recommendations? “Maybe a major like Chevron or an independent like Pioneer Natural [Resources] or perhaps the most obvious of them all, the stock of the man who predicted it all, Paal Kibsgaard’s Schlumberger,” the “Mad Money” host said.