Oil prices stable in Asia

Oil prices stable in Asia

SINGAPORE (Reuters): Crude prices in Asia were steady on
Tuesday, holding the gains from a rally in London and New York on
Monday.

December New York Mercantile Exchange (NYMEX) crude futures
were last traded at $22.50 at 0745 GMT, down just one cent from
the New York close.

The contract jumped 76 cents higher in New York to close at
$22.51 on Monday.

The price surge was the result of technically driven buying,
as prices broke through some resistance levels.

The rally so far this week put prices back on track for a move
towards the 32-month peak of $25.12 reached in late September.

Traders forecast rising prices amid the boost in demand that
typically occurs during the fourth quarter, but OPEC production
discipline with its supply curbs would be important.

OPEC has agreed to keep production down at least until the end
of March. With prices volatile in recent weeks, OPEC has
maintained it was committed to the cuts in order to bolster
sentiment.