UPSC Prelims 2011 · Question 56 of 100
UPSC Prelims 2011 question on Brent Crude Oil
- ExamUPSC CSE
- Year2011
- PaperGeneral Studies Paper I
- SubjectIndian Economy
- TopicExternal Sector of India
- DifficultyHard
- TypeStatement
In the context of global oil prices, “Brent crude oil” is frequently referred to in the news. What does this term imply?
1. It is a major classification of crude oil.
2. Its is sourced from North Sea.
3. It does not contain sulphur.
Which of the statements given above is/are correct?
Show answer
Answer: B. 1 and 2 only
Verdict
Correct Answer: 1 and 2 only
Analysis
Brent crude oil is a major global crude oil benchmark and is sourced from the North Sea, but it is not completely sulphur-free.
Statement by statement
1. It is a major classification of crude oil — Correct
Brent crude is one of the most important global benchmarks for crude oil pricing. It is widely used in international oil trade.
2. It is sourced from the North Sea — Correct
Brent crude comes from oil fields in the North Sea, mainly between the United Kingdom and Norway.
3. It does not contain sulphur — Incorrect
Brent crude is called sweet crude because it has low sulphur content. However, it is not sulphur-free. It contains a small amount of sulphur.
Extra UPSC info
Major crude oil benchmarks include Brent, WTI and Dubai/Oman.
Sweet crude means low sulphur content.
Sour crude means high sulphur content.
Light crude has low density and is easier to refine.
Brent is important for India because global oil price changes affect inflation, current account deficit, fiscal deficit and fuel prices.
How to crack it
Brent crude is a major crude oil benchmark sourced from the North Sea. It is low in sulphur but not sulphur-free. Therefore, statements 1 and 2 only are correct.