* Equities, oil prices bounce up after recent losses * Tropical storm forms in Atlantic, supports oil * Coming up: API oil inventory data, Tues, 4:30 p.m. EDT NEW YORK, Aug 23 (Reuters) - U.S. crude oil futures edged up on Monday as equities also rebounded from recent losses and earlier dollar strength also provided support to oil. The dollar index .DXY was weaker and it was near flat against the euro EUR= ahead of the stock market open. Crude futures on Friday fell for a third straight day, ending down for a second consecutive week as concerns about a stalling economic recovery weighed across markets. High U.S. stockpiles of crude and fuel, signaling demand that remains tepid, along with plenty of spare capacity available from OPEC producers if a disruption occurred, helped pressure crude below $75 a barrel last week. A tropical storm in the Atlantic provided some support for oil prices on Monday, despite forecasts that it will not threaten the Gulf of Mexico. FUNDAMENTALS * On the New York Mercantile Exchange, October crude CLV0 rose 44 cents, or 0.6 percent, to $74.26 a barrel by 8:58 a.m. EDT (1258 GMT), trading from $73.55 to $74.42. * Friday's $73.19 intraday low was the lowest since prices fell to $71.44 on July 7. * Tropical Storm Danielle in the central Atlantic Ocean was expected to strengthen into a hurricane as it moved west-northwest towards Bermuda, the U.S. National Hurricane Center said. All of the computer weather models expect Danielle to avoid Florida and the Gulf of Mexico. [ID:nN23172211] * The U.S. Chicago Fed national activity index USCFNA=ECI rose to zero in July from a downwardly revised minus 0.70 in June. [ID:nNLLNJE6CX] OUTSIDE MARKETS * U.S. stock index futures rose following two weeks of losses for the S&P and Dow as sentiment was lifted by several potential mergers and deals. [.N] * World stocks rose from last week's one-month low on as a slew of corporate takeover activity and an encouraging euro zone business survey helped ease concerns about a global economic slowdown. [MKTS/GLOB] * Gold hovered below $1,230 an ounce as investors stayed wary. [GOL/] * Copper held firm on Monday but was seen undermined by a stronger dollar and doubts about the strength of demand in top consumers China and the United States. [ID:nLDE67M0KI] UPCOMING DATA/EVENTS * API weekly oil inventory report, Tuesday 4:30 p.m. EDT * EIA weekly oil inventory data, Wednesday, 10:30 a.m. EDT 8:58 LAST NET PCT LOW HIGH CURRENT DAY AGO CHNG CHNG VOL VOL CLc1 74.26 0.44 0.6% 73.55 74.42 29,182 123,224 CLc2 74.91 0.45 0.6% 74.20 75.08 6,225 288,023 LCOc1 74.71 0.45 0.6% 74.01 74.89 37,637 120,706 RBc1 1.9305 0.0054 0.3% 1.9140 1.9356 1,281 27,974 RBc2 1.8763 0.0089 0.5% 1.8600 1.8808 2,357 32,379 HOc1 1.9838 0.0128 0.7% 1.9655 1.9854 1,166 40,692 HOc2 2.0037 0.0106 0.5% 1.9866 2.0070 2,214 30,452 * NYMEX crude oil for October CLc1 rose 44 cents to $74.26 a barrel by 8:58 a.m. in volume of 29,192 lots. (Reporting by Robert Gibbons; Editing by John Picinich)

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