Jim Cramer says there is a bull market in oil and gas thanks to recent big mergers

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CNBC’s Jim Cramer said oil stocks are increasing in value thanks to two major oil company mergers as well as the rising price of crude.

Chevron announced Monday it would buy Hess in a $53 billion deal, while Exxon Mobil agreed to buy rival Pioneer Natural Resources for $59.5 billion earlier in October.on Monday said he sees a bull market in oil and gas. He said oil stocks are increasing in value thanks to two major oil company mergers as well as the rising price of crude.

"I'd argue that there's always a bull market somewhere and right now it's in the oil and gas cohort group," Cramer said.These recent mergers reminded Cramer of oil takeovers in the early 1980s, when he said major companies realized"it was cheaper to drill for oil on Wall Street than in the ground." To Cramer, Chevron can use its large budget to make deals that increase earnings almost immediately.

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