Larry Kudlow writes about King Dollar and lower oil prices for the Washington Examiner today.
“The International Energy Agency’s new forecast for 2015 shows a global reduction in demand growth of 900,000 barrels a day versus a previous projection of an increase of 1.1 million barrels a day. But U.S. production is expected to increase by 685,000 barrels a day next year. So besides American technological breakthroughs, this oil-price-drop story is a triumph of the free-market forces of supply overwhelming demand — all while the OPEC cartel dissolves before our eyes.
As economist John Ryding puts it, “The oil supply curve is shifting outward at a faster pace than the oil demand curve, which argues against a rebound in oil prices in 2015.”
But there is another important angle to this story: Looming behind the falling price of oil is the return of King Dollar.”