With both oil inventories falling and natural gas running hot, Jim Cramer was taken aback by the staggering moves in energy in the past few months. Suddenly oil is trading above $50 and gas is approaching $2.50.
Do they make sense?
"Yes, even as this new level of pricing is more bullish than I thought possible, and I was a pretty lonely bull back when oil traded in the $30s," the "Mad Money" host said.
Cramer attributed the rally to the shortfalls of the big Canadian oil shutdown caused by wildfires, and a pickup in gasoline consumption from driving more. Third, the dreaded increase in oil drilling that many expected would happen when crude tipped $50 hasn't happened.
More important, are the severe supply constraints occurring in both Libya and Nigeria. Chinese production has also fallen hard, even as Chinese auto purchases have increased. Autos represent one-third of all the oil use in China.