Energy Commodity Prices Increased by 59% in 2021, EIA Reports by Bethany Blankley, The Center Square
The prices of energy, crude and gasoline all increased in 2021 from 2020, the U.S. Energy Information Agency reported. Prices increased because of higher demand and a range of other factors. By the end of 2021, commodities on the energy index traded 59% higher than they did on the first trading day last year on the S&P Goldman Sachs Commodity Index (GSCI), the EIA reported. GSCI is a commodity index that tracks the performance of global commodities markets. It’s a weighted average that’s updated every year. In 2021, the energy index comprised 54% of the GSCI, with the two crude oil benchmarks, the West Texas Intermediate (WTI) and Brent, accounting for approximately 70% of the energy index. WTI crude oil accounts for the largest share of the overall GSCI of more than 21%. Most GSCI commodity indexes increased by roughly 20%, with only the precious metals index declining in 2021. On a percentage basis last year, the energy index increased by more than double than the industrial metals index did. The only GSCI commodity
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Legacy of Giving to help make Christmas a little easier—all courtesy of G&C Auto Body and the Crozat Foundation. NABC Recycled Rides is a unique program in which businesses representing all facets of the collision repair industry team up to repair and donate vehicles to individuals and families in need of reliable transportation. Since the inception of the NABC Recycled Rides program in 2007, members of the NABC have donated more than 2,750 vehicles valued at more than $38 million. The late Gene Crozat started the Crozat Family Foundation in 2004 and it’s still going strong. He used to like to say, “It is our responsibility to help our fellow men.” It started as a “Car-A-Month Giveaway” on various local radio stations and has grown into a foundation that provides support to the individuals and families they encounter when they meet through the company’s various car giveaways, accord-
that increased more than the energy index was coffee. Prices for petroleum products RBOB and ULSC increased the most in 2021, trading higher by 67% and 64%, respectively, compared to 2020. RBOB is a reformulated grade of gasoline used as the benchmark for gasoline trading; ULSD is ultra-low sulfur diesel used as a benchmark for heating oil trading. Prices for crude oils on the WTI and Brent increased slightly less, by 62% and 55%, respectively, in 2021. Several factors contributed to the higher energy commodity prices last year, the EIA noted, including weather disruptions such as the February freeze in Texas and Hurricane Ida, which greatly impacted production in the Gulf. Other factors included increased demand for gasoline and diesel and an ongoing demand for crude oil and natural gas greater than the rate of production. Crude oil prices increased in 2021 with the spot price of Brent crude trading at $50 a barrel at the beginning of the year, increasing to $86 a barrel by late October. The 2021 Brent annual average of $71 a barrel was the highest it had been in the past three years. The
ing to the foundation’s website. There have been a few setbacks for the Crozat family since they lost their patriarch, but the business is still growing. Since Gene’s passing, the Crozat family has lost seven of their homes, which burned to the ground in two separate fires, including the house they all grew up in. One thing Gene taught his four children—Shawn, Josh, Jamie and Patrick—and his beloved granddaughter, Maddy, is to make helping people a priority. Crozat took philanthropy to the next level, giving people cars, cash and even jobs at one of his shops in some instances. The company has given away approximately 200 cars since it started the “Car-A-Month Giveaway” nearly two decades ago. “We hope to help the recipients get back on the road of life, giving a reliable ride and additional support to those who have fallen upon misfortune or endured catastrophic, unforeseen events,” Gene Crozat said when he established the program. “We strive to help create success where failure may have seemed inevitable.”
40 FEBRUARY 2022 AUTOBODY NEWS / autobodynews.com
WTI’s average was $3 a barrel less than Brent’s in 2021. According to EIA’s December 2021 Short-Term Energy Outlook estimates, U.S. crude oil production in 2021 decreased by 0.1 million barrels a day from 2020 and by 1.1 million barrels a day from 2019. The EIA also estimated petroleum inventories decreased by 469 million barrels globally in 2021, “likely the largest annual inventory withdrawal since 2007.” Rising crude oil prices and increased gasoline demand also contributed to the highest national average price for retail gasoline since 2014. The national average increased to $3.01 a gallon in 2021, with retail gasoline increasing by more than a dollar a gallon over the course of the year. At the beginning of 2021, the national average retail gasoline price was $2.25 a gallon. It then passed the $3 a gallon mark on May 17 after disruptions to the Colonial Pipeline. Gas prices continued to increase throughout 2021, with the average price peaking at $3.41 a gallon Nov. 8. The average retail price was $3.28 a gallon by the end of the year, more than a dollar more than it was at the start of the year, EIA reported. The lowest average of $2.67
a gallon was in the Gulf Coast states, with Texas reporting some of the lowest gas prices all year. The highest average of $3.70 a gallon was on the West Coast, with California reporting some of the highest gas prices. From Jan. 4 to Dec. 27, 2021, retail gasoline prices increased by 88 cents a gallon in the Midwest, $1.20 a gallon in the Rocky Mountains and $1.32 a gallon on the West Coast, the EIA reported. The spike in prices in the Rocky Mountains and West Coast resulted from refinery closures in those regions, which led to reduced output of gasoline and lower gasoline inventories, the EIA noted. Less production was compounded by the fact that demand increased due to more visitors traveling to national parks, also putting a strain on already lower gasoline inventories, causing prices for delivery and prices at the pump to go up. One major contributor to high retail gasoline prices last year was high crude oil prices, the EIA pointed out. The average crude oil price for 2021 was the highest it has been since 2018, due to reduced U.S. refinery capacity, and low gasoline inventories that couldn’t keep up with demand.
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