Array

LONDON, July 27 (Reuters) Oil rose above $75 on Friday as investors focused on tightening fuel supplies and shrugged off immediate worries over corporate borrowing costs and the U.S.

economy that roiled stock markets.

Sharp falls in global stock markets, triggered by weak U.S.

housing data and tightening credit markets, had dragged crude more than $1 lower late on Thursday. But oil recovered its poise on Friday, remaining within sight of its record high above $78.

''The upward movement again shows the market is tight on supply because of the peak demand period,'' said Gerard Burg, an oil and gas analyst from National Australia Bank.

London Brent crude was up 33 cents at $75.51 a barrel by 1004 GMT, after ending $1.14 lower on Thursday.

U.S. crude rose 50 cents to $75.45.

A slowing of the U.S. economy would have an impact on energy consumption. But for now demand from the world's top consumer remains robust. Government inventory data on Wednesday showed a third-straight draw in U.S. crude stocks.

Analysts said OPEC's output curbs would ensure a continuing decline in U.S. crude stocks through the third quarter.

Traders continued to monitor the closure of most of ExxonMobil's 326,000 barrel per day Fawley refinery, which accounts for almost a fifth of Britain's refining capacity.

While bullish for gasoline and heating oil, the closure could be bearish for North Sea crude if the plant stops processing for a prolonged period. Exxon said on Thursday it plans to restart operations over the next several days.

REUTERS KR HS1820