SINGAPORE (Commodity Online) : World oil prices dropped further in Asian trade Wednesday mainly on weak regional stocks while a strong dollar also dent the black gold.

Light sweet crude for October delivery was seen trading at $73.71 a barrel at 12.00 noon Singapore time while Brent crude was at $77.31 a barrel in London.

However, the black gold took some support after an explosion ripped through a major refinery in northern Mexico on Tuesday.

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Mexico’s state oil company Pemex confirmed at least one person was killed in the blast, which it said occurred following a leak in a compressor at the diesel making unit at the refinery that resulted a brief fire.

Analysts said oil prices remained under pressure from rising US petroleum stockpiles.

The dollar gained almost 1 percent against a basket of currencies while Japan's Nikkei average fell 2 percent on renewed concerns about European banks and the global economy, which pulled global stock markets down from one-month highs on Tuesday.

On Tuesday, ol prices were mixed as traders reacted to news of the Mexico explosion

New York's main contract, light sweet crude for delivery in October closed at $74.09 a barrel while Brent crude for October delivery closed at $77.74 a barrel.

There was no settlement price for US crude on Monday because of the Labor Day holiday.