Dropping Oil Prices Grease Dow, Up 30.7

NEW YORK — The stock market forged ahead today, extending its advance of the past three sessions as the price of oil tumbled.

The Dow Jones average of 30 industrials climbed 30.70 to 2,610.40, bringing its gain over the past four sessions to 91.59 points.

Advancing issues outnumbered declines by more than 2 to 1 on the New York Stock Exchange, with 1,064 up, 488 down and 449 unchanged.

Big Board volume totaled 205.82 million shares, up from 185.82 million in the previous session.

The NYSE’s composite index rose 1.92 to 180.11.

Oil prices dropped and stocks picked up new forward momentum after word came from the State Department that Iraq had agreed to hold talks with President Bush on the crisis in the Persian Gulf.

Crude oil for January delivery fell more than $3 a barrel, to the neighborhood of $27.50 a barrel, on the New York Mercantile Exchange.

Stocks have also benefited of late from falling interest rates and steps by the Federal Reserve toward an easier credit policy.

But analysts say investors were still proceeding cautiously as they wait for more evidence about the prospective severity of the economic slump.

Unsettling news is expected on Friday when the Labor Department issues its monthly report on the employment situation.