Despite all the hoopla and hubbub over the weekly oil inventory number, Cramer told viewers Friday, it doesn’t much affect the long-term price of oil.
Think about it. Every week inventories are pretty much in line with expectations. If it turns out we have less oil than anticipated, traders pounce on oil-related stocks. If there’s excess supply, these stocks get sold. But still, even after this buying and selling, the price of oil has doubled over the past year.
That’s some important information for the wise investor. It means that if this coming Wednesday’s number – July 2 – shows increased inventory, you should be buying oil stocks while everyone else in the market is selling them. Use that sell-off to your advantage. After all, we know that over the long term oil’s going to continue its steady climb upward.