Oil Prices in 2021
Brent crude averaged $70.86 per barrel in 2021 and WTI $68.13, up about $29 from the pandemic year. Brent spot rose from $50.37 on 4 January to $85.76 on 20 October. Vaccines brought demand back faster than OPEC+ restored supply, and a global gas shortage added fuel in the autumn. The Omicron variant knocked prices back in late November.
| Month | Brent | WTI | Brent − WTI | Brent (relative) |
|---|---|---|---|---|
| January | $54.77 | $52.00 | $2.77 | |
| February | $62.28 | $59.04 | $3.24 | |
| March | $65.41 | $62.33 | $3.08 | |
| April | $64.81 | $61.72 | $3.09 | |
| May | $68.53 | $65.17 | $3.36 | |
| June | $73.16 | $71.38 | $1.78 | |
| July | $75.17 | $72.49 | $2.68 | |
| August | $70.75 | $67.73 | $3.02 | |
| September | $74.49 | $71.65 | $2.84 | |
| October | $83.54 | $81.48 | $2.06 | |
| November | $81.05 | $79.15 | $1.90 | |
| December | $74.17 | $71.71 | $2.46 | |
| 2021 average | $70.86 | $68.13 | $2.73 |
Source: U.S. Energy Information Administration (EIA), monthly averages of daily spot prices, Europe Brent spot FOB (series RBRTE) and Cushing, OK WTI spot FOB (series RWTC), retrieved 13 October 2026. Nominal dollars.
What drove oil prices in 2021, quarter by quarter
Q1: The Saudi surprise and the Texas freeze
On 5 January Saudi Arabia pledged an extra voluntary cut of 1 million barrels per day for February and March, on top of the record OPEC+ reductions agreed in 2020. Vaccination campaigns were speeding up. In mid-February Winter Storm Uri froze wells and pipelines in Texas and briefly shut in a large share of US output. Brent climbed from $54.77 in January to $65.41 in March. The grounding of the container ship Ever Given in the Suez Canal from 23 to 29 March added short-lived shipping disruption.
Q2: Reopening and gradual OPEC+ increases
On 1 April OPEC+ agreed to ease its cuts gradually from May to July. Demand from reopening economies in the US and Europe absorbed the extra barrels, and inventories fell. Brent averaged $73.16 in June, the first monthly average above $70 since 2019.
Q3: The OPEC+ deal, Delta and Hurricane Ida
A dispute between Saudi Arabia and the UAE over baselines delayed the next OPEC+ step. On 18 July the group agreed to raise output by 400,000 b/d every month from August until the 2020 cuts were fully unwound. The Delta variant weighed on prices in August, when Brent averaged $70.75. On 29 August Hurricane Ida hit Louisiana and shut most offshore Gulf of Mexico production for days, helping Brent back to $74.49 in September.
Q4: Energy crunch, SPR release and Omicron
Natural gas and coal shortages in Europe and Asia sent gas prices to records and encouraged some switching from gas to oil for power and industry. Brent averaged $83.54 in October, its highest monthly average since 2014, and spot peaked at $85.76 on 20 October. On 23 November the US announced a release of 50 million barrels from the Strategic Petroleum Reserve, coordinated with China, India, Japan, South Korea and the UK. Three days later the Omicron variant was identified, and Brent futures fell about 12% in a single session. Brent averaged $74.17 in December and finished the year at $77.24, 53% above its first trading day.
2021 highs and lows
| Brent | WTI | |
|---|---|---|
| First trading day | $50.37 (4 January 2021) | $47.47 (4 January 2021) |
| Annual high | $85.76 (20 October 2021) | $85.64 (26 October 2021) |
| Annual low | $50.37 (4 January 2021) | $47.47 (4 January 2021) |
| Last trading day | $77.24 (31 December 2021) | $75.33 (31 December 2021) |
Daily closing spot assessments from EIA series RBRTE and RWTC (via FRED). Futures settlements and intraday prices differ from these spot values.
How 2021 compares
The 2021 Brent average of $70.86 was $28.90 above 2020 and above the 2019 level of $64.30. In other words, prices had fully recovered from the pandemic within about 18 months of the crash. The Brent-WTI spread was unusually narrow, at about $2.70. US shale producers held back on drilling, so US supply grew slowly, as explained in our what moves oil prices guide. Compare every year in the oil price history table, or follow today's market on the oil price chart.
← Oil prices in 2020
Brent averaged $41.96: crash, negative WTI and recovery.
Oil prices in 2022 →
Brent averaged $100.93 after Russia invaded Ukraine.
Oil prices in 2021 FAQ
What was the average oil price in 2021?
Brent crude averaged $70.86 per barrel in 2021 and WTI averaged $68.13, according to EIA spot price data. That was roughly $29 higher than in 2020, as vaccines and reopening restored fuel demand while OPEC+ returned its record production cuts only gradually.
What was the highest oil price in 2021?
Brent's highest daily spot price in 2021 was $85.76 per barrel on 20 October, its highest since 2018. WTI peaked at $85.64 on 26 October. A global shortage of natural gas and coal pushed some users towards oil products and tightened the market in the autumn.
Why did oil prices rise in 2021?
Oil rose in 2021 because demand recovered from the pandemic faster than supply. OPEC+ restored only 400,000 barrels per day each month from August, and US shale companies kept investment low. Inventories fell through the year, and an autumn gas crisis added further demand for oil.
What happened to oil prices when Omicron appeared?
When the Omicron variant was identified on 26 November 2021, Brent futures fell about 12% in one session on fears of new lockdowns. Prices recovered within weeks as the variant proved milder than feared, and Brent ended 2021 at $77.24 per barrel on the spot market.
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