El-Erian Says Oil Price Is About Supply, Not Demand

The video discusses the current disconnect between oil prices and Treasury yields, highlighting that the market is more focused on supply issues rather than demand. It explains how US shale production is outpacing OPEC's production cuts, even at lower oil prices, which is a new realization for the market. The video also touches on the insufficient production cuts by OPEC and the impact of countries like Libya on the overall supply story.

What is the primary factor influencing oil prices according to the discussion?

• Demand

• Supply

• Inflation

• Interest Rates

How does shale production respond to lower oil prices?

• It stops completely

• It becomes more responsive

• It remains unchanged

• It decreases significantly

Which is winning the race according to the discussion: OPEC production cuts or US shale production?

• Both are equal

• Neither

• US shale production

• OPEC production cuts

What is the issue with OPEC's production cuts?

• They are insufficient

• They are too unpredictable

• They are too large

• They are too frequent

What would indicate a demand-driven oil market according to the discussion?

• Higher oil prices

• Lower oil prices

• Treasury market responding differently

• Increased OPEC production