
Ep. 250 Bob Murphy vs. Biden Administration on Fuel Inventories
Bob Murphy Show
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The Relationship Between Inventory and Price and Exports
The Biden administration is trying to curb exports of gasoline and other petroleum products from the United States over to Europe. President Obama has ordered U.S. refiners to bulk up their domestic inventories in order to help bring down prices at the pump. But if you look at the relationship between those numbers, the level of the inventory and the market price of gasoline or crude oil, whatever price you want to use, and exports, you would tend to find that in periods where exports are high, prices are high, inventories are low. That's what I'm focusing on; just ordering them to bulk up inventories considered an isolation.
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