BASF Report 2021 Management’s Report – Economic Environment 55 in the United States thus only grew by 1.8% in 2021. Chemical Price trends for crude oil (Brent) and naphtha production in South America increased by 4.6%. $/barrel, $/metric ton $/t $/bbl Chemical production (excluding pharmaceuticals) 1,100 130 Real change compared with previous year 1,000 120 2021 2020 900 Naphtha Crude oil 110 800 ø 2021: $635/t ø 2021: $71/bbl 100 World 6.1% –0.1% ø 2020: $355/t ø 2020: $42/bbl European Union 6.0% –2.1% 700 90 600 80 United States 1.8% –3.5% 500 70 Emerging markets of Asia 7.6% 2.4% 400 60 Japan 3.7% –12.7% 300 50 South America 4.6% –0.6% 200 40 100 30 0 20 Price trends for key commodities Following the slump in 2020, raw materials prices rose sharply over Jan 20Feb 20Mar 20Apr 20May 20June 20July 20Aug 20Sept 20Oct 20Nov 20Dec 20Jan 21Feb 21Mar 21Apr 21May 21June 21July 21Aug 21Sept 21Oct 21Nov 21Dec 21 the course of 2021. Global oil demand increased significantly again, but supply was only augmented modestly by OPEC+. As a result, the average price for reference Brent crude oil increased to level ($1.99 per mmBtu). Gas prices in China averaged around $71 per barrel (2020: $42 per barrel). The price of oil fluctuated over $6.72 per mmBtu nationally (2020: $6.29 per mmBtu), while the the course of the year between around $55 per barrel in January average price in the coastal provinces was $7.99 per mmBtu and around $84 per barrel in October. (2020: $7.48 per mmBtu). Over the course of the year, the average monthly price for the chemi cal raw material naphtha ranged between $501 per metric ton in January and $764 per metric ton in October. At $635 per metric ton, the annualized average price of naphtha in 2021 was signifi- cantly higher than in 2020 ($355 per metric ton). High demand from Asia, cold weather and low storage levels in Western Europe, as well as a limited supply of liquid natural gas led to sharp increases in gas prices. At $16.02 per mmBtu, the average price of gas on the European spot market in particular was significantly higher than in 2020 ($3.17 per mmBtu). It rose from an average price of $6.56 per mmBtu in the first quarter to $31.92 per mmBtu in the fourth quarter. The average price of gas in the United States was $3.89 per mmBtu, likewise well above the prior-year