Oil Demand Fears 'Are Premature,' Analyst Sen Says

Rita Sen discusses the recent movements in oil prices, attributing them to market sentiment rather than changes in fundamentals. Despite high prices, demand remains strong in Asia and Europe, with some slowdown in the US. The summer driving season is expected to see increased demand, though US gasoline demand is slightly down. European gas prices face challenges, with potential rationing needed due to supply disruptions. Policy risks are significant, with governments considering measures like reactivating coal plants to ensure energy supply.

What was the primary reason for the recent big move in oil prices?

• A significant drop in oil supply

• A sudden increase in oil demand

• A change in oil market fundamentals

• A delayed reaction to Federal Reserve's interest rate hikes

How has the US gasoline demand reacted to higher prices compared to other regions?

• It has increased significantly

• It has remained stable

• It has shown some decline

• It has decreased drastically

What is one reason for the strong travel demand despite high gasoline prices?

• Lower air travel costs

• Increased public transportation options

• Government subsidies for travel

• Pent-up demand after years of restrictions

What measure is Germany taking to address potential energy shortages?

• Building new nuclear power plants

• Bringing back coal-fired plants

• Importing more natural gas

• Increasing solar power production

What is a major risk factor for energy markets in Europe?

• Fluctuating oil prices

• Policy uncertainty

• Decreasing renewable energy sources

• Increasing coal prices