“Oil is collapsing guys. It’s collapsing,” Cramer said on “Squawk on the Street.” Asked if prices could fall to $50 per barrel, Cramer said, “I could make a case for the $40s here. I’m not kidding.”
The “Mad Money” host did not provide a timeline for his prediction.
“Demand is slowing for oil and we’re pumping like mad,” Cramer said Thursday.
Cramer said on Monday rosy outlooks from major oil companies Exxon Mobil, Chevron and BP do not reflect the economic reality. That same day President Donald Trump announced that the U.S. would once again impose sanctions on Iran’s energy sector.
“You’d think that the price of oil would be soaring,” following news of the sanctions, Cramer said at the time. “But instead it actually closed down on the day.”
— Reuters and Carmin Chappell contributed to this report.
Originally published at CNBC