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Cramer: Harold Hamm is the ultimate wrong predictor for oil

Oilman Harold Hamm would be the last person on the planet Jim Cramer would turn to if he were to ask the opinion of the future of oil prices.

The chairman and CEO of Continental Resources told CNBC on Thursday that the price of oil was at a turning point. Hamm believes that it could be ready to launch to $69 or $72 all the way up from $49 a barrel.

"In the years since I have gotten to know this delightful, giving man, I have come to know him as the ultimate wrong-way prognosticator for oil," the "Mad Money" host said of Hamm.





Harold Hamm
David Orrell | CNBC
Harold Hamm
"Crude is going back to the $40s, not the $60s or $70s if this plays out the way Hamm suggests." -Jim Cramer

Hamm previously appeared on "Mad Money" in 2014, when crude was in the mid-$80s and predicted that oil would bounce back to $100. On the same day, former CEO of Cheniere Energy Charif Souki also told Cramer that oil belonged substantially lower, perhaps $60 or less.

Investors now know who made the right call.

At the time, Souki explained that traditional oil companies don't have marketing departments. Instead, they continue to pump oil and push the product.

"That is exactly what Hamm did and it was totally wrong … he is the last guy I would follow on this issue," Cramer said.

Hamm's Continental Resources was among one of the biggest losers of the oil downturn. Hamm also indicated to CNBC on Thursday that his company was ready to start pumping again to complete wells that have not yet been completed, though he will not use new rigs to drill.

Cramer's concern is that the new supply from companies like Continental could push the price of oil lower, as it could encourage Saudi Arabia to pump more to compete.

"Crude is going back to the $40s, not the $60s or $70s if this plays out the way Hamm suggests," Cramer said.

Cramer's recommendation to Hamm is that if Continental will begin pumping again, than it is time to sell some Continental stock, too. With the stock at $40, up from $13 in January, it is time to ring the register, he said.

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