Oil producers' pain was louder than consumers' pleasure on Friday, and the averages plunged in response.
Jim Cramer understands the dilemma. Consumers benefit from lower oil prices, but then investors get freaked out and start to wonder if companies will go belly up and what the consequences to this could be.
"Now always remember how the big money thinks. To these multi-billion dollar funds, stocks are an asset class, not a bunch of individual companies," the "Mad Money" host added.
That means that the funds that believe that lower oil is bad news will come in and blow out the S&P 500 futures, which will have a ripple effect of low stock prices for all. The winners from lower oil, domestic retailers and restaurants, will get picked out of the rubble along with those who are immune to low oil like healthcare and biotechs.
It's a cycle, over and over again. This is nothing new, folks. Cramer has seen this happen so many times before.
Until the day when actual oil companies go bust, it will be a battle between the positives and negatives of oil.
"Ultimately the big stable oil companies will buy the bankrupt ones and the poorer countries that are overproducing now won't be able to pay their bills—including Russia—so companies will stop drilling. And lower energy prices will stimulate more economic activity, which will boost demand."
That means that this slippery slope of crude will come to an end one day. In the meantime, Cramer has taken his gear out for the battlefield and is sharing what he will have his eyes on next week as the battle continues: