Oil price Gains this week could prove little more than a 'dead cat bounce'

The oil price has rallied this week, rising above a key threshold yesterday as the dollar fell, effectively making the commodity cheaper for many international buyers.

But many experts continue to assert that the fundamental supply and demand picture is not conducive to sustained higher prices. There are predictions the recovery in recent sessions will prove to be a "dead cat bounce" and that there is still "bottom-fishing left" before a floor is found.

The Wall Street Journal notes US benchmark West Texas Intermediate rose above $50 a barrel for the first time since July on Thursday, while its international counterpart Brent crude settled in European trading at above $53.

After a minor dip in Asia overnight, both are back above these levels on Friday morning. The Journal says the rises reflect "expectations of falling production and growing global demand".

A surge towards the end of Thursday trading in New York was also driven by the release of dovish minutes from the latest Federal Reserve rate-setting meeting, which some took as a sign rates will be held for longer – and that prompted a fall in the dollar.

But many remain unconvinced oversupply is easing enough to support a prolonged upward shift.

Official data published on Wednesday revealed US reserves and production unexpectedly rose last week, while supplies are still thought to be outstripping global demand by one million barrels a day.

"We expect this rally to reverse and reiterate our forecast for lower prices for longer," Goldman Sachs, one of the most bearish forecasters, wrote in a note to clients.

Warren Gilman, chairman and chief executive of CEF Holdings told CNBC that any rise above $50 by WTI will be "short-lived" and that the next "down leg" could see a further fall than the last.

This would effectively repeat the pattern of this year, when Brent bottomed out at $45 a barrel in January before recovering around $20 over the subsequent five months.

The downturn set in again in June and the benchmark eventually hit a new six-year low of $42 a barrel.

"We still have a problem of growing supply and, in order to cut that, we need prices to fall further," said Gilman.