Today’s Brew 12-13-14

Larry Kudlow writes about King Dollar and lower oil prices for the Washington Examiner today.

Lower oil and King Dollar are unambiguously good

“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.”


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