Stalling jeep!

i have a '97 jeep cherokee sport that has begun stalling at red lights and then the rpms jump over 1200. the oil pressure gauge is usually about 60 but when this happens it hovers between 40 and 60. The check engine light has come on and it smells like burning oil on the outside at the grill. It feels as if it will stall but it hasn't yet..any info on what may be wrong and how to fix it would be great help!! Thanks!

When was the last tune up done? The oil smell is probably from your valve cover gasket. Check to see if all the bolts are tight. Also check your PCV valve and breather tube, makesure that they aren't plugged up and that they are hooked up. I have noticed on my 00' XJ that the rear vent tube coming from the valve cover is starting to rub a flat spot in it. Then lookat all your vacuum lines, makesur ethat they are in good shape and not split, or broke. A vacuum leak will cause you to stall( or almost) if its bad enough.
Your oil pressure flucuation may be because of the RPM changes. If your questioning it, get a mechanical oil pressure guage on it and see if it has the same readings as the dash guage.
If your engine light comes on, good chance that there is a code in there, you can go to auto Zone, or Advance Auto, they can pull the code for you to see what is possibly wrong. I suggest to first look at the simple stuff first, them look at the computer. To clear the light, disconnect your battery for about 5-10 minutes, reconnect. Hope this helps.