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.