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Larry Kudlow on Energy & Oil |
Well, most of this is just humbug. Lower oil prices are unambiguously positive.
U.S. oil production has nearly doubled in recent years to 9 million barrels a day. This is not only a triumph of U.S. energy independence, it is a victory for the workings of the free market. Greater supply, not government cartels, is driving down prices.
The American energy revolution, combined with the market forces of supply and demand, is delivering something on the order of a $125 billion tax cut. Not only have wholesale oil prices dropped from about $100 a barrel to $66, but gasoline prices have fallen from near $4 a gallon to $2.78 at the week's close.