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The Impact of Strong US Economy on Global Commodity Prices
The strong US economy benefits the US by lowering global commodity prices, particularly oil and industrial base metals. This is because the strong US economy, which accounts for 20% of global oil demand, cannot offset the decline in the remaining 80% of the world's oil demand caused by the over-tight fed transmitting its monetary policy through a strong dollar. As a result, the demand for global commodities falls, and geopolitical risks are considered to be less significant than intrinsic risks.