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Cramer: Who really controls oil (Hint: Not USA)

Jim Cramer says the rebound in oil never had anything to do with Doha. It is blatantly obvious that it was always about supply and demand.

"I think the misinformation about oil is so legion these days that a vast majority of analysts and pundits got this whole oil minister meeting dead wrong from the very outset," the "Mad Money" host said.

The United States is pumping about 1 million barrels a day less than when it was at its high. With U.S. on the decline, Cramer expects oil production to drop to 8.6 million by year end from the 9.6 million produced in 2015. Meanwhile, the Saudis have produced about 10.1 million barrels a day.

"The idea that Russia was going to make a pact with the Saudis to keep oil frozen at these levels was a total fantasy. The Russians have no excess capacity," Cramer said.

However, the Saudis have as much as 1 million barrels a day in excess capacity. Thus, Cramer added that Saudi Arabia could directly offset the production decline of the U.S.

Iran can produce...