(Reuters) - Oil rose toward $82 a barrel on Monday, but pared an earlier gain to an eight-week high, supported by a weaker dollar and signs of economic recovery in top oil consumer the United States.
The dollar slipped as Friday's above-forecast U.S. jobs data and easing concerns over Greek debt lifted investor demand for risk. Gold also gained, while European stocks were lower mid-morning.
"We're seeing some recovery in risk appetite. The Greek issues seem to be being sorted out, which is important," said Mike Wittner, oil analyst at Societe Generale.
"The bottom line is we're nearing the top of the range we've been in since October. We're still looking for rangebound prices. I'm not quite ready to get too bullish yet."
U.S. crude was up 29 cents at $81.79 a barrel by 1200 GMT, after touching $82.41, the highest since $83.95 on January 11. Brent crude was up 36 cents at $80.25 after hitting $80.92, also the highest since January 11.
The dollar index .DXY was down 0.10 percent, paring its earlier decline. A weaker dollar makes other dollar-denominated commodities cheaper for holders of other currencies and tends to support oil prices.
French President Nicolas Sarkozy promised Greece on Sunday that euro zone countries would help it overcome its financial problems and vowed a crackdown on speculators who Athens blames for its woes.
2010 HIGH
Some analysts see oil making a brief push above its 2010 high near $84 a barrel.
"We very well could retest the 2010 highs of $83.95," MF Global analyst Edward Meir said.
"However, our belief is that should we get there, a rather substantial correction will set in, sending prices back into the mid-to high $70 range, as some of the long money comes off the table."
Money managers extended their net long crude oil futures positions on the New York Mercantile Exchange in the week to March 2, the Commodity Futures Trading Commission said on Friday.
Oil was further supported on Monday from news that China will build two strategic oil reserve bases -- a development likely to underpin demand in the world's second-largest consumer.
With global demand expected to revive in 2010, the Organization of the Petroleum Exporting Countries looks set to keep its production target unchanged when it meets on March 17, as it has for more than a year.
Oil is slightly above the $70-$80 range that many in OPEC have said they prefer.
(Additional reporting by Osamu Tsukimori in Tokyo; Editing by William Hardy)
