eli5: why the current price of gas is much higher than in 2008 when the price of brent barrel was quite higher?
In: 226
Efficient Market principle. The commodity markets and stock market are priced based on net present value, not simply “today’s value.” The market has priced in an expected shortage of oil, and therefore also a respective increase in future price. Even if said shortage hasn’t actually occurred yet, prices have already adjusted to account for the publicly available information about the future.
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