The hot conversation on Wall Street Tuesday was whether oil will bounce back rapidly in a V-shaped recovery, or more slowly in a U-shape. Jim Cramer determined he's with the U-shape crowd.
"I think the proponents predicting what will happen with oil actually have gravitas for once. That said, I'm going with the U," the "Mad Money" host said.
The prevailing perspective was reiterated by Morgan Stanley in its research note entitled "The Forgotten Barrels." It did a deep dive on the future of the supply side of the oil patch in various countries around the world, and indicated that "oil markets appear weak until mid-2017."
Another perspective came from David Demshur, the CEO of Core Laboratories, who appeared on "Mad Money" last week and said there would be a V-shaped recovery. He believes there will be a strong comeback with crude moving almost 50 percent higher by the end of the year.
Cramer interpreted Demshur's perspective as meaning that there are oil well depletions that are being ignored, and the supply side is not nearly as large as many think.