NEW YORK (AP) - 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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