Oil prices remain under pressure, hovering near a two-year low set earlier this week, as analysts warn there will be no rapid recovery because of ample supply of the commodity.

On Thursday, benchmark Brent crude oil was at $US98.39 a barrel, down 0.6 per cent on the day. The price briefly spiked on Tuesday after hitting a two-year low of $US96.21 on Monday, but has slid around 15 per cent since June.

Oil prices are unlikely to rise while current oversupply remains. Credit:Jessica Shapiro

Oil has been hammered by a potent combination of strong supply and fears of dwindling demand, stoked by disappointing economic data from leading consumer China.

The US dollar is also causing issues for oil sellers, rising a full 6 per cent against a basket of currencies since June.