Oil prices remained fairly stable after losing 6.5% yesterday on the forecast of unusually warm weather in the US Northeast where the bulk of the nation’s heating oil users live. Weather Derivatives Inc. of Belton, Missouri predicts a 21% drop in consumption in the period from Dec. 28 to Jan. 3.

``It’s been pretty warm, especially in the Northeast,’’ said Mike Armbruster, co-founder of Altavest Worldwide Trading Inc. in Laguna Hills, California. ``We’re going to break $40.’’

February crude rose $0.48 to $41.80 a barrel. For the last five sessions crude fell more than 11%.

Yesterday oil prices dropped on milder weather in the US and rising distillates supplies.

Forecasts issued late last week predict warmer weather in the US Northeast in the days to come after December 29, reports the National Weather Service.

U.S. light crude futures were down 78 cents to $43.40 a barrel in early European trade that remains thin due to Christmas holidays. Prices are still 34% up since the beginning of the year.