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Ethan Wu's avatar

is the difference between real and nominal wti price adjusting for inflation? if so, how do u calculate real wti? which year is the baseline u compare against?

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Arjun Murti's avatar

Yes. The difference is inflation. In the older note I would have used 2020 as the baseline, but now use 2021. I use a US CPI series I have downloaded from Bloomberg to adjust the historical prices nominal to real.

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Deepak Chaulagai's avatar

Fantastic posts - all three ROCE deep dives!

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Arjun Murti's avatar

Thank you Deepak!

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Isac Simon's avatar

Great piece as always, Arjun! Have a great year ahead!

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Arjun Murti's avatar

Thank you Isac! Your feedback is always appreciated. Happy New Year!

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