Kudlow Crows About Trump’s ‘Secret Stash of Oil’ Saving the Day On Inflation

Former Trump economic advisor and Fox Business host, Larry Kudlow, praised President Donald Trump’s “secret stash of oil” as he marveled at the stock market booming after the president announced some kind of deal with Iran is near.

“Quick look at markets right now — the Dow holding on to those gains after President Trump’s Truth Social was posted, up 700 points right now, firmly above 50,000. Larry Kudlow is here, host of Kudlow on Fox Business. And by the way, as the US stock market goes up, those oil prices keep going down — corner of your screen — down a couple bucks, back to $80 a barrel. Please, sir, give us your thoughts,” said Fox News anchor Sandra Smith to begin the conversation.

“You know, I think the slope of oil prices is going to continue to come down, okay, with its attendant, you know, decline in gasoline. I mean, look, oil prices are down about 20 percent, right, using West Texas. So gasoline prices are almost 10 percent. Half of the states now have a three-dollar handle. Almost half,” Kudlow said.

“You’re talking about in the last month or so?” Smith clarified.

Kudlow agreed, “In the last few weeks, but call it a month. So if you do some — let’s take a look at Mr. Trump’s secret stash of oil, I call it, okay — in the dead of night. Every radar’s off, transponder’s off, lights are off, okay. It’s very exciting.”

“And we don’t exactly escort them through, but we help to coordinate. We don’t want them bumping into each other. So — source of mine — I was making some calls today in the administration. And they’re doing about a dozen ships a night. That’s what they’re saying. So they’re picking the pace up, okay?” Kudlow said, adding:

So you do some arithmetic on that. A dozen ships a night — that’ll get you 360 ships per month. Okay? So if I use the same ratio — this is just fun, it’s not exact — but if I used the same ratio, 200 ships get 100 million barrels of oil. 360 ships are gonna — it is not quite a double, it’s 80% more, okay? That gives me about six million barrels per day.

The last tranche was three million barrels a day. So for the next month, six million. That’s a big number. The global oil story, supply and demand, intersects at about a hundred million barrels per day. And we were short 20%, which is 20 million barrels a day. What I’m saying is, if these estimates are close, and if we continue, you know, a dozen ships per night — whatever that number comes in to — we’ll be cutting the shortage by almost half. It’s nine million barrels a day, right? That’s 20 million is what we’ve lost. So that means prices can ease down. This is the missing link. The secret stash, as I call it.

As the discussion continued, Kudlow explained how he sees the “secret stash” helping to bring down prices across the board even as inflation surged last month.

“All production inventories are low. Gas refining inventories are low. That is true, okay. But what I’m suggesting is, in the dead of night, the secret ship passage — the secret stash — the shortfall is getting smaller and smaller, okay? And as I said, I talked to some sources. They’ve been doing it. They have a great methodology. They’re going to pick it up. Somebody said to me about a dozen ships a night. So this is that arithmetic,” he said, concluding:

And that’ll get you — in the next month — another nine million barrels a day. So you got another six million barrels a day — I beg your pardon. So you did three last month, six million could come this month, that’s nine million. The shortfall was 20 million. So we’re almost halfway home, okay? Now we’ll see what the deal is with President Trump that he’s just announced. We’ll see the details and whether there’s a real, you know, reopening of Hormuz that doesn’t require dead-of-night ships. That’s an interesting point. But my generic point is oil prices are coming down because of what our Navy is doing. Gasoline prices are coming down, okay.

Watch the clip above via Fox News.

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