Commodities Buzz: EIA Says Energy Prices Shot Up In 2021

4 Jan 2022 , 02:43 PM

The US EIA stated in a latest update yesterday that prices in energy commodity futures markets greatly increased throughout 2021. The futures price of RBOB (a reformulated grade of gasoline used as the benchmark for gasoline trading) increased by 67% during 2021. Among energy commodities, prices for petroleum products such as RBOB and ULSD (ultra-low sulfur diesel, which is used as a benchmark for heating oil trading) increased the most during 2021, at 67% and 64%, respectively. Prices for crude oils such as WTI (62%) and Brent (55%) increased by slightly less. Futures prices for gasoil (the name for ULSD in Europe) increased by 54% during 2021. Natural gas prices increased the least among energy commodities, although 38% is still a relatively large increase. Several factors contributed to the higher energy commodity prices throughout 2021, including weather disruptions, such as the February winter freeze and Hurricane Ida; increased demand for gasoline and diesel; and increasing demand for crude oil and natural gas at a rate faster than increased production.

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