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?
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.
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?
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.
Fantastic posts - all three ROCE deep dives!
Thank you Deepak!
Great piece as always, Arjun! Have a great year ahead!
Thank you Isac! Your feedback is always appreciated. Happy New Year!