Miner Company
To ‘Price In' Hormuz, Markets Must Recognize Two Economic Risks
Gasoline topped $4.00 a gallon on March 30 – up 30% in 30 days. The fairy-tale that economists tell would have you believe that this price is set by the balance of supply-and-demand in the present moment – the “spot price.” But the domestic supply of gasoline has not changed, and inventories are abundant. Demand (consumption) has been rock-steady.
Gasoline topped $4.00 a gallon on March 30 – up 30% in 30 days. The fairy-tale that economists tell would have you believe that this price is set by the balance of supply-and-demand in the present moment – the “spot price.” But the domestic supply of gasoline has not changed, and inventories are abundant. Demand (consumption) has been rock-steady.