Energy prices rose an average of 59% last year, the most of any commodity, as the economic recovery from the global pandemic boosted demand for crude and petroleum products.
According to The Houston Chronicle, among fuel prices in 2021, gasoline was up 67%, heating oil rose 64% and U.S. crude benchmark West Texas Intermediate climbed 62%, according to the S&P Goldman Sachs Commodity Index. The price of natural gas increased by 38%, the least among energy commodities but still a relatively large jump, according to the Energy Department.
“Price increases were largely driven by increased demand from the initial phase of global economic recovery from the COVID-19 pandemic,” the Energy Department said last week. “By comparison, most other commodity indexes included in the Goldman Sachs Commodity Index increased by about 20 percent.”
Several other factors caused energy prices to skyrocket in 2021, the Energy Department said. One of them was weather disruption from Hurricane Ida in August and the winter storms in February. Read the full story.