Cramer’s Biggest Fear for 2011

What is the biggest chink in Cramer’s bullish case for next year? That oil prices climb north of $110 a barrel.

“This is my big worry for 2011,” he said on Wednesday, “is we have to see oil more stable.”

He predicted that 2011 would see crude futures at between $90 and $110, but a move higher than the top end of that range could put a damper on a U.S. economic recovery. As energy expert Peter Buetel has pointed out, every 5-cent increase at the pumps translates into an annualized $7.3 billion that consumers aren’t spending on apparel, dining out or, say, vacations, which help to boost the economy.

Also, a big move in oil could effectively neutralize the tax cuts that President Obama and Congress just extended, thereby preventing that money from flowing into the economy as was intended.

“You get the tax cut, and that’s good, but this is obviously a huge tax on the American consumer,” Cramer said of rising oil prices.

Call Cramer: 1-800-743-CNBC

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