With worries of a Brexit and falling oil prices on his mind, Jim Cramer is ready for anything. But there was one event that caught his attention on Thursday, which made him confident that crude isn't likely to fall much further.
"We live in a world where individual stocks are playthings for the hedge funds, too small to matter. But Brexit and oil? They are the real deal, palpable to all the super-rich trigger pullers and good news on Brexit ... battled mightily against the dive in oil," the "Mad Money" host said.
Cramer often refers to $50 as the breakeven price for oilfields in the U.S. When crude hits that level, companies that have drilled wells and then capped them, will suddenly begin to drill again. Additionally, many cash-strapped oil producers sold oil futures at a premium to $50 to raise money and pay the bank.
Pioneer Natural Resources purchased 28,000 acres in the Permian Basin for $435 million from Devon Energy. It also immediately announced plans to increase drilling by 42 percent, bringing its rig count to 17 from 12.
Considering that the price of oil was hammered last Friday when the Baker Hughes rig count showed just an additional three rigs coming online, the news of Pioneer pretty much crushed the hopes of anyone who believed oil would go back to $60.