NEW YORK, DEC. 14 -- Stock prices moved sharply higher today, propelling the Dow Jones industrial average past the 1900-mark as last week's rally continued.

Analysts said the advance reflected a new decline in oil prices and the belief by many investors that there may be a year-end rally in stock prices.

The Dow Jones average of 30 industrials, which rose 11.60 on Friday and more than 100 points last week, climbed 65.82 today to close at 1932.86. The pace of trading was moderate by recent standards.

It was the largely gain in the widely watched market indicator since a 91.51-point rise on Oct. 29.

Advancing issues led losers by a ratio of more than 3 to 1 among stocks listed on the New York Stock Exchange, with 1,296 issues up, 395 down and 315 unchanged. The NYSE index rose 3.47 to finish at 135.26. As measured by the Wilshire Equity Index, the advance added $59.65 billion to the value of 5,000 stocks, boosting their total valuation to $2.35 trillion.

Volume on the Big Board came to 187.69 million shares, compared with 151.68 million shares Friday.

Analysts said the advance was a spillover from last week, when prices pushed ahead in four of five sessions and the Dow Jones industrial average notched its biggest one-week gain ever at 100.30 points.

Last week's advance was interrupted only by a decline Thursday, when the market was surprised by a surge in the October trade deficit.

Larry Wachtel, a market analyst for Prudential Bache Securities Inc., said the advance "has the overtones of a year-end rally" and was assisted by bargain-hunting.

Crude oil prices tumbled worldwide today as OPEC reached a makeshift agreement on prices and production amid doubts that the pact would do anything to reduce a global oversupply of crude.

Hugh Johnson, chief investment officer for the regional brokerage First Albany Corp., said stock traders have concluded that inflation may remain subdued. He said the economic reports for November now being released have calmed fears that the economy would turn sharply lower after the stock crash.

Today, for example, the Federal Reserve said industrial production climbed 0.4 percent in November after a 0.9 percent jump in October.

"What we are seeing in the markets is a sigh of relief that the economic damage was not more extensive," Johnson said.

But concerns are being expressed about the longer economic outlook.

In a new forecast released today, the National Association of Business Economists said its November survey of economists revealed that half of them expect the economy to go into recession by the end of next year. In an August survey, only a third were that pessimistic.

Among the point-plus gainers, International Business Machines rose 5 to 115 1/8, General Electric rose 1 5/8 to 45 1/4, American Telephone & Telegraph rose 1 to 28 3/8 and Eastman Kodak rose 3 1/8 to 48 5/8.

Schlumberger led the list of most actively-traded issues on the NYSE and was unchanged at 29.

Texaco fell 3/8 to 35 1/2 and Pennzoil fell 4 7/8 to 74 7/8. Pennzoil and a committee of Texaco shareholders reached a tentative agreement last week on a proposed settlement that would end the oil companies' legal dispute and bring Texaco out of bankruptcy proceedings. But Texaco creditors and the courts will also have a say in any settlement.

Several airline issues were gainers, since they benefit from lower fuel prices. AMR was up 2 at 31 1/8, Allegis rose 1 3/8 to 70 1/4, Delta gained 1 1/2 to 35 5/8 and NWA rose 1/2 to 34 1/4.