Larry Bellehumeur

Oil Above $50 and Still Has Legs - Cramer

Scares me a bit that people are starting to pump up oil too much, too soon. As much as I am a believer in the long-term bull case for Crude, you have to look at the large stockpiles that have to be widdled through. I do believe that Oil should rebound more in the 2nd half of 2009, as Stimulus project use a lot of Diesel (Generators, Machinery and Worker Trucks). As well, many that might have flown to a more expensive vacation will chose to drive in the US Summer Driving season.

Watch for Oil to fully recover (north of $100) sometime in 2010, when the BRIC countries resume their long-term middle class growth plan.

Larry