Crude Prices Edge Ahead

"Over the last couple of weeks, the price of crude has climbed $9 because of the weather. Neutral withdrawal numbers this week could suggest that the rise in price has been disconnected from true demand," Meir said.

Another pressure point affecting the crude oil market is the impending resolution against Iran's nuclear weapons program by the United Nations Security Council, according to Max Pyziur, energy analyst at CPM Group in New York. The sanctions are scheduled to go into effect on Feb. 20. Severe sanctions with Chinese and Russian support could propel crude prices past the $60 level. Weaker sanctions could quickly reduce price support for crude oil.

Pyziur says that the consequences of OPEC's decision to reduce crude production and shipments haven't been entirely priced into the futures markets. The production cuts went into effect on Feb. 1, but deliveries of that production won't reach U.S. ports until early March.

Oil freight transport rates, which tend to decline when production and deliveries are cut, are leading indicators of reductions in crude supplies. Thus, the price of crude may climb if freight rates begin to fall throughout February.

In the stock market, BP (BP Quote) is trading lower after the company reported delays with two offshore projects in the Gulf of Mexico. The operational delays are expected to reduce the company's fossil fuel production over the next two years.