Best of Bloomberg Intelligence (08/03/2022)

The video discusses the challenges in oil production due to limited spare capacity, primarily in Saudi Arabia and the UAE. It highlights ongoing global supply issues exacerbated by a lack of investment, which cannot be quickly remedied. Despite lower demand in the US, global consumption remains high. The video also covers the rebalancing of prices at the pump and the dynamics of gasoline and diesel markets, noting that while gasoline margins are compressing, diesel margins remain elevated due to industrial demand and geopolitical factors.

Which countries have the capacity to significantly increase oil production?

• United States and Canada

• Saudi Arabia and UAE

• Russia and China

• Brazil and Mexico

What is a major reason for the ongoing global supply issue in oil?

• Excessive production

• Lack of investment

• High demand

• Technological advancements

What is one of the main reasons for the recent decrease in oil demand in the US?

• Transparent market data

• Government regulations

• Economic recession

• Increased public transportation

What factor contributes to the sustainability of gasoline margin compression?

• Lower oil prices

• Higher diesel production

• Increased demand for diesel

• More gasoline produced from a barrel of oil

How might diesel help alleviate energy issues in Europe during winter?

• By reducing oil prices

• By increasing diesel inventories

• By increasing gasoline production

• By replacing Russian natural gas