Oil prices near $78 in Asia

Global oil prices recovered Wednesday led by London''s Brent crude as US crude stocks dropped sharply. Light sweet crude for November delivery was seen trading at $77.81 a barrel at 1.30pm Singapore time while Brent crude surged in early trade and was seen at $102.04 a barrel on the ICE Exchange. Analysts said the black Gold is likely to extend gains during the day as tighter US crude stocks and promises by the Federal Reserve to launch new stimulus measures are seen as a welcome step for it. American Petroleum Institute on Tuesday reported that crude-oil supplies fell by 3.1 million barrels for the week ended Sept. 3. Oil finished below $76 a barrel for the first time in more than a year in regular New York trading Tuesday, pressured by worries about Europe''s debt crisis and the outlook for U.S. economic growth. US crude for November delivery fell 2% to $77.61, the lowest close since Sept. 28, 2010. Prices are down 16% this year. Brent oil for November settlement slipped 0.3% to $101.40 a barrel on the London-based ICE Futures Europe exchange. The European benchmark contract was at a premium of $24.16 to New York crude, compared with a record of $26.87 on Sept. 6.