Oil futures traded in a narrow range Monday, pressured as the dollar gained strength against the euro but supported by prospects that JPMorgan Chase & Co. will boost its offer for Bear Stearns Cos.Many investors view commodities such as oil as a hedge against inflation and a falling dollar. Also, a weaker dollar makes oil less expensive to overseas investors. The effect tends to reverse when the greenback strengthens, as it did Monday. However, oil prices rose from earlier lows near $100 a barrel, following the stock market higher on reports that JPMorgan is talking to Bear Stearns about sweetening its offer for the investment bank to $10 a share from $2. Energy investors often view stocks as a proxy of the economy's health.



Last week, oil prices dipped in part on concerns that Bear's collapse was a sign of significant economic problems.

Light, sweet crude for May delivery fell 45 cents to $101.39 a barrel on the New York Mercantile Exchange.

Other energy futures were mixed Monday. April gasoline futures rose 1.82 cents to $2.6233 a gallon on the Nymex, and April heating oil futures rose 2.03 cents to $2.9975 a gallon.

April natural gas futures rose 8.3 cents to $9.148 per 1,000 cubic feet.

In London, May Brent crude fell 9 cents to $100.29 barrel on the ICE Futures exchange.

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