Cramer Returns to ConocoPhillips as Oil Price Hits $96

Jim Cramer returned to ConocoPhillips as oil prices touched $96 a barrel, calling the stock a pick for investors even as he warned that new supply would make the path harder.

In a tweet Tuesday, the CNBC host said: "With oil back to $96 here we go back to Conoco and Diamondback And, of course, higher yields….relentless but now there is more supply coming and it will be a much tougher slog."

Two banks have raised their price targets on COP in recent weeks. Mizuho lifted its target to $150 from $136 on May 27, keeping an Outperform rating. The bank said the company could benefit from the conflict in Iran, which it expects to keep global oil prices elevated over the long term. Barclays increased its target to $155 from $136, maintaining an Overweight rating, and cited the same Iran war impact and declining global inventories.

COP shares have gained 32% over the past year and 24% year-to-date. The stock's COP stock page Alpha Score at AlphaScala stands at 55, labeled Mixed.

Cramer's note about more supply coming points to a risk: new production could arrive even as the Iran conflict keeps a floor under prices. For COP holders, the test is whether supply gains outpace the geopolitical premium.

Weekly U.S. inventory reports will offer the first data on whether supply is actually rising.