Australian Government's $94 million crude oil purchase offers a simple economics lesson

Here's something for economics students.

Did you hear the Australian Government bought $94 million of crude oil from the United States last week?

If you wanted an example of the difference between an energy stock and an energy flow, it's a good case study.

It'll come in handy the next time you're learning about transport and energy systems.

Last week, Australia took advantage of record-low oil prices to buy a stockpile of crude oil from the United States.

Crude oil is the raw material that's turned into petrol, diesel, LPG and jet fuel.

Under international fuel security rules, countries are meant to have an emergency stockpile of 90 days' worth of net-oil imports, but Australia has neglected to meet that threshold for years.

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