Q. In the context of global oil prices, "Brent crude oil" is frequently referred to in the news. What does this term imply? - It is a major classification of crude oil.
- It is sourced from North Sea.
- It does not contain sulphur.
Which of the statements given above is/are correct? (UPSC Prelims 2011)
Answer:
1 and 2 only
Notes: The correct answer is
[B] 1 and 2 only.Brent Crude is one of the three major benchmarks used globally to price oil, along with West Texas Intermediate (WTI) and Dubai/Oman.
- 1. Major classification of crude oil (Correct): Brent serves as the primary pricing benchmark for two-thirds of the world's internationally traded crude oil. It is used to set the price for oil from Europe, Africa, and the Middle East flowing to the West.
- 2. Sourced from North Sea (Correct): Brent Crude is a "basket" of oils produced from several oil fields in the North Sea (located between the UK and Norway). The name originally came from the "Brent" oil field, named after the Brent Goose.
- 3. It does not contain sulphur (Incorrect): This is a technical error. All crude oils contain some sulphur. Brent is classified as "Sweet" crude because its sulphur content is relatively low (about 0.37%), but it is not zero. If sulphur content is high (above 0.5%), oil is called "Sour."