Oil steadied above $75 on Friday, supported by the fundamentals of energy supply and demand and shrugging 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 seven cents at $75.25 a barrel by 0828 GMT, after ending $1.14 lower on Thursday.

U.S. crude rose 24 cents to $75.19.

The rise came despite a fall in Asian shares on Friday, which tracked losses on Wall Street where the blue-chip Dow Jones industrial index fell 2.3 percent in its biggest drop since the last global sell-off in late February.

The FTSEurofirst 300 index fell as much as one percent on Friday before recovering.

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.

OPEC Energy