Q. The term 'West Texas Intermediate', sometimes found in news, refers to a grade of (UPSC Prelims 2020)
Answer:
Crude oil
Notes: The correct answer is
[A] Crude oil. West Texas Intermediate (WTI) is one of the most well-known benchmarks used in the global oil market to determine pricing.
- Definition (Statement A – Correct): WTI is a specific grade of crude oil extracted primarily from the Permian Basin in the United States. It is described as a "sweet, light" crude oil.
- Sweet: It has a low sulfur content (less than 0.5%), making it easier and cheaper to refine into gasoline.
- Light: It has a low density (high API gravity), which allows for a higher yield of high-value products like diesel and jet fuel during the refining process.
- Global Benchmarks: WTI is the underlying commodity for the New York Mercantile Exchange's (NYMEX) oil futures contracts. It is one of the three main global benchmarks alongside Brent Crude (from the North Sea) and Dubai/Oman (for Middle Eastern oil).
- Bullion (Statement B – Incorrect): Refers to physical gold and silver of high purity, usually in the form of bars or ingots.
- Rare Earth Elements (Statement C – Incorrect): These are a group of 17 chemical elements used in high-tech devices like smartphones and electric vehicle batteries (e.g., Neodymium, Lanthanum).
- Uranium (Statement D – Incorrect): This is a radioactive metal used primarily as fuel in nuclear power plants.