Cramer: This market makes absolutely no sense

The circumstances in oil have CNBC's Jim Cramer baffled.

"I'm just gripped by this oil situation because it's so nutty," Cramer said Wednesday on "Squawk on the Street." "If oil is trading at $33-$34, I think you'd see the retailers and restaurants lead the market. That's completely insane, but it is what has been happening."

U.S. crude futures were sharply higher Wednesday morning after dipping below $30 a barrel for the first time since December 2003 on Tuesday.

Nonetheless, many industry experts see oil prices plunging into the $20s. Standard Chartered said Monday it sees crude hitting a low of $10 a barrel, "before most of the money managers in the market conceded that matters had gone too far."

Also, there were no WTI futures contracts trading higher than $54 a barrel as of Wednesday.

"People at home have to be confused, and the answer is that you have every right to be confused because it makes absolutely no sense," Cramer said.