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Cramer's Plays on $5 Gas

The average U.S. price of gasoline jumped 18 cents a gallon in the past two weeks due to rising costs of crude oil and related concerns about tensions in the Middle East, although supplies of fuel remained plentiful in most of the country, according to the Lundberg Survey.

The national average cost for a gallon of regular gasoline rose to $3.69 on Feb. 24, according to the nationwide survey of gasoline stations.

To capitalize on the higher gas price, CNBC’s Jim Cramer says oil and gas drilling companies are shifting away from natural gas and focusing more on oil. The Lundberg Survey suggests the price of gas isn’t likely to fall anytime soon, so Cramer thinks these companies may enjoy increased profits for some time.

Given the continued shift to oil, Cramer thinks select oil and gas names can be bought on dips. Click ahead for his preferred plays.

By Drew Sandholm with Reuters
Published 29 February 2012

When this story was published, Cramer’s charitable trust owned Apache, ConocoPhillips and Schlumberger.