CNBC’s Jim Cramer said Monday the oil rally could eventually unsettle the stock market.
“If you want the rest of the stock market to keep climbing, oil needs to stop going higher, otherwise we’re toast,” the “Mad Money” host said, after the price of West Texas Intermediate (WTI) crude hit $83.87 on Monday, which is the highest level since October 2014.
Cramer said that price is “much too high for my taste,” while seeking to draw attention to what he believes is contradictory behavior in the markets.
“The oil stocks and their fellow travelers make up less than 10% of the S&P 500. When they’re roaring, it causes nothing but trouble for the other 90%,” Cramer said. “Here’s the issue, though. Despite the relentless price increases, oil’s rise … hasn’t impacted the stocks of any of the big energy consumers while it buoys the stocks of the energy producers.”
For example, Cramer pointed to airlines and other industries related to travel and leisure.