In this paper we present an extension of the continuous interior penalty method of Douglas and Dupont [ Interior penalty procedures for elliptic and parabolic Galerkin methods, in Computing Methods in Applied Sciences, Lecture Notes in Phys. 58, Springer-Verlag, Berlin, 1976, pp. 207 - 216] to Oseen's equations. The method consists of a stabilized Galerkin formulation using equal order interpolation for pressure and velocity. To counter instabilities due to the pressure/ velocity coupling, or due to a high local Reynolds number, we add a stabilization term giving L-2-control of the jump of the gradient over element faces ( edges in two dimensions) to the standard Galerkin formulation. Boundary conditions are imposed in a weak sense using a consistent penalty formulation due to Nitsche. We prove energy-type a priori error estimates independent of the local Reynolds number and give some numerical examples recovering the theoretical results.