Oil Prices Face Multiple Headwinds Despite Increasing Demand

Oil prices continued to trade on the defensive, as supplies of US crude oil surge to 80-year highs.  Although demand continues to remain strong, the rapid increase in the US dollar also is generating headwinds for oil prices.

Since the majority of oil prices globally are quoted in US dollars, as the value of the dollar increases, the value of crude oil needs to keep pace.  Thursday’s ECB…