Investors have to realize that this is a state-controlled oil company. The government wants to fight inflation and they've made a clear choice not to let fuel prices get in the way of that.

The situation is very delicate, very serious. A quick solution is likely because both sides are dependent on the gas.

The government needs to give everybody a rebate of the gas tax. When the oil company decides to gouge the public, the government doesn't stop them because they end up getting an increase in taxes.

Strip out higher oil prices, and Europe doesn't have an inflation problem. We're still bullish for the medium term.

A year ago some said that the doubling of oil prices would push our inflation far beyond target and that a recession was required to slow the increase in house prices.

Both [the French and the euro-zone data] reflect higher oil prices rather than any rise in underlying inflation.