Energy: The Area Under The Curve

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When looking at energy prices, look at both the price increase and how long it’s been that high. A prolonged price increase causes profit charts to look very red as they continue to hurt businesses (and by extension, their customers). This is called the “area under the curve” and it describes how long energy prices have stayed above the baseline. If it becomes bigger than expected—meaning the price hike has lingered longer than expected—then financial analysts and business owners should adjust the baseline energy price and reanalyse from there. Read full article here

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