Inventory Data Boost Energy

Crude prices were also rising because of reduced output from the Nigerian delta due to a pipeline leak and a new blast of cold weather along the East Coast of the U.S.

Inventories of gasoline, which were 5.7% above the five-year average at the beginning of February, are only 0.7% above average now.

"The numbers show that U.S. demand for gasoline is increasing at a time when no imports are coming from Europe and lots of maintenance is occurring at refineries," Addison said. "Our surplus of gasoline has basically disappeared."

If crude oil closes above $62 a barrel anytime this week, it will likely make a run toward $63, according to Addison. He also believes that tight gasoline supplies will encourage the price of reformulated gasoline to climb toward $1.95 a gallon.

Energy stocks were mostly higher. The iPath Goldman Sachs Crude Oil (OIL Quote) ETF was up 2% at $37.68.

Oil giant Exxon Mobil (XOM Quote) added nearly 1% to $71.64 after saying it plans to start more than 20 new projects around the world in the next three years.

El Paso (EP Quote) was upgraded by Calyon Securities from neutral to buy, and its stock finished the day 12 cents higher at $13.98.

Calyon also upgraded Williams Companies (WMB Quote) from add to buy, and its shares moved 3.7% higher at $27.18.

Natural gas distributor Oneok(OKE Quote) was upgraded by Wachovia from market-perform to outperform. Its stock rose 3.8% to $42.41.