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 factors are contributing to the disconnect between Treasurys and crude oil prices?

How has shale production responded to lower oil prices according to the text?

Why is the assumption about shale production at lower oil prices considered new for the market?

What is the significance of the production cuts within OPEC as mentioned in the text?

What does the text suggest about the relationship between supply and demand in the current market?