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Cramer: Oil prices hit by 'perfect storm'

As oil continues its spiral downward, how much further can it go?

On CNBC's "Squawk on the Street," Jim Cramer says $70 per barrel could be in the cards.

Jim Cramer
Adam Jeffery | CNBC
Jim Cramer

"Sixty dollars is, I think, extreme. I think the $70, the $75 is possible," he said.

If oil does drop to $70, Cramer does expect a "concerted slowdown" in production.

On Tuesday, U.S. crude oil saw its biggest one-day selloff in almost two years. Prices hit a 27-month low on Wednesday

The oil market has seen a jump in supply as countries including Iran, Saudi Arabia, U.S. and Libya pump out oil and supply exceeds demand.

"This is uniquely a perfect storm against oil," he said.

Cramer also said investors underestimate Ebola, which has sparked a worldwide effort to contain the deadly disease.

"We underestimate Russia," he added. "We underestimate ISIL. We underestimate the decline in commodities. We underestimate the decline in the Chinese growth. We underestimate Germany's resolve to be able to stay balanced budget in a Herbert Hoover way."