Oil rises after U.S. inventory drop but outlook remains gloomy

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Oil rose on Thursday, recovering some ground after a surprisingly upbeat picture of U.S. demand halted the previous day's steep slide, although the prospect of oversupply in 2018 has prompted yet more analysts to cut their price forecasts.

Brent crude futures were up 71 cents on the day at $48.50 a barrel. The price fell as much as 4.6 percent at one point on Wednesday, before closing down 3.7 percent, its biggest one-day drop in a month.