Cramer: Oil Could Go Down to Mid-$80s

Monday, 20 Jun 2011 | 3:23 PM ET

Oil could soon fall to the mid-$80s due to weak industrial demand, Cramer said Monday, adding that he expects consumers to soon feel less pain a the pump.

“Oil’s in a 20 percent decline from the top,” he said. “We’re about to see gasoline come down.”

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Cramer reiterated his beliefthat retailers are starting to rally because of the anticipated drop in gas prices. What’s more, he thinks that many feel the commodity complex is going to “roll over.” Companies like VF Corp., Nike, Deckers Outdoor Group , Chipotle Mexican Grill and Panera Bread are all up today, and “they’re all sensitive to the grains and cotton.”

However, if China stops tightening, Cramer thinks oil could go back up to the mid-$90s.

In other market news, euro zone finance ministers gave Greece two weeks to approve further spending cuts and taxes rises in exchange for another 12 billion euros in emergency loans. But while some on Wall Street and around the globe are wondering if Greece should leave the euro, Cramer said he believes the country will stay with the currency.

“The euro was created in order to make it so there would be no world wars anymore in Europe,” he said.

Therefore, he believes the European Union has “dug in their heels” to keep the currency in tact.

Cramer also believes the delay in Greece’s bail out gives some of the banks with really bad exposure a chance to lessen their exposure.

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