Cramer: Keep an eye on oil prices

Oil prices are pushing stocks lower as investors looked to move on from a dismal January, CNBC's Jim Cramer said Monday.

"The inventory numbers are still too large. I don't see any real demand at the $34-$35 level," Cramer said on "Squawk on the Street."

U.S. oil inventories increased by 8.4 million barrels from Jan 18. to Jan. 22, according to the latest data from the Energy Information Administration.

U.S. crude futures fell nearly 5 percent during the first trading session of February. U.S. stocks followed suit, with the Dow Jones industrial average falling more than 75 points in midmorning trading.

The three major indexes had their worst January in at least seven years, with the Dow and S&P 500 down over 5 percent and the Nasdaq dropping 7.86 percent.

"Just be aware that oil and gas and natural gas are so low that nobody is making money," Cramer said.