Energy markets
The central hedging policy of DB Group aims to reduce energy price fluctuations. Our activities are therefore not exposed to the full impact of changes in market prices, at least not in the short term.
Brent oil
| BRENT CRUDE / USD/bbl | 2021 | 2020 | Change | |
absolute | % | |||
Average price | 71.0 | 43.2 | +27.8 | +64.4 |
Highest price | 86.7 | 71.8 | – | – |
Lowest price | 50.5 | 16.0 | – | – |
Year-end price | 77.8 | 51.8 | +26.0 | +50.2 |
Source: Thomson Reuters
The price of oil increased significantly in 2021 due to the rapid recovery of the global economy and the growing demand this entailed, all whilst production volumes were limited. This development was somewhat weakened for the Eurozone by exchange rate effects.
Apart from the increase in the price of oil, fuel prices in Germany were pushed up by the introduction of the CO₂ tax and the reversal of the temporary reduction in value-added tax at the beginning of 2021. In 2021, fuel prices were about 22% higher than in the previous year.
Rising fuel prices usually strengthen the competitiveness of the railways in comparison to cars. However, given the Covid-19-related restrictions that continued to apply in 2021 and the associated preference for more individual means of transport (due to the smaller amount of contact involved), the development of fuel prices in 2021 was of minor importance for passengers choosing their mode of transport.
Electricity and emissions certificates
2021 | 2020 | Change | ||
absolute | % | |||
| BASE LOAD POWER (FOLLOWING YEAR) (€/MWH) | ||||
Average price | 89.0 | 40.5 | +48.5 | +120 |
Highest price | 325.2 | 50.0 | – | – |
Lowest price | 48.7 | 33.9 | – | – |
Year-end price | 120.5 | 50.0 | +70.5 | +141 |
| EMISSIONS CERTIFICATES (€/t CO₂) |
|
|
|
|
Average price | 53.7 | 24.8 | +28.9 | +117 |
Highest price | 90.8 | 33.5 | – | – |
Lowest price | 31.3 | 14.3 | – | – |
Year-end price | 80.7 | 32.7 | +48.0 | +147 |
Source: Thomson Reuters
Prices on the futures market for electricity rose very sharply in 2021. The most important price drivers were the prices for emissions allowances (European allowances as part of the European Emissions Trading System) and the price increase for natural gas. Our hedging activities inDB Group’s operating business curbed this development.
