Spot price of West Texas Intermediate in relation to the price of Brent Crude. Historically price differences between Brent and other index crudes have been based on physical differences in crude oil specifications and short-term variations in supply and demand.
When does market failure occur? Whenever resources are not allocated efficiently. ie. total surplus is not maximised. What are the main types of market failure?
âSometimes they do, but most crashes occur when the market is already downtrending.â He says that people are already selling into a downtrending market when they âsuddenly puke it up one day. The momentum that causes a crash is built up over days, weeks or months.â