Waiting for oil to come back up? You'll be in for a long wait, CNBC's Jim Cramer said Wednesday.
"U.S. crude will slip from 9.4 million barrels per day to only 8.7 million barrels in 2016; 8.4 million in 2017," Cramer said on "Squawk on the Street." "Canada is going to increase by 200,000, so you're really talking about a net 800,000 drop. That's not what the Saudis want. They want to see a 50 percent drop because they're seeing a 50 percent capex cut number, like what you saw in Chesapeake."
Chesapeake Energy announced the cut Wednesday in its earnings report. Also Wednesday, U.S. oil prices fell more than 3.5 percent to trade below $31 a barrel one day after American Petroleum Institute data showed that domestic crude stockpiles had risen more than twice than expected.
"We're going nowhere fast in oil, and all those people who bid it up from $26 to $33: short covering and fools, because we go right back to $26," Cramer said.
WTI futures have traded as low as $26.05 a barrel this year, but had recently made a bid higher from that mark amid talks of a production freeze deal between Saudi Arabia and Russia.
"The Saudi Arabia-Russia deal was just a total hoax. What they basically said was, 'We're going to produce a lot more if Iran and Iraq produce more,'" Cramer said. "The Saudis are taking direct aim at the United States."
"Iran and Iraq are good for about 3.25-to-3.5 million barrels per day; both of these would love to get to 5 [million] as quickly as possible. Not only was there never any deal, but there was a deal that the Saudis could go up to 11 [million]."
Disclosure: Cramer's trust did not own shares of Chesapeake when this article was published.