Get Rigged for Oil

“Oil didn’t go up today because King Fahd died,” Jim Cramer told his “Mad Money” viewers Monday night. “That’s silly.”

Indeed, King Fahd had been ill for some time and his influence on oil wasn’t terribly important anymore. But King Fahd did keep oil cheap, which cut demand for alternative energy. As a result, we have no real infrastructure for drilling, Cramer said. That’s because the Saudis made oil so cheap. What’s more, during the past 20 years, when the price of oil did rise, the Saudis always knocked it down.

Interestingly, though, King Fahd’s oil policies now translate into higher oil prices. Cramer said he wouldn’t be surprised to see oil hit $100 a barrel, as Goldman Sachs projected.
TheStreet.com