UPSC Prelims 2011 Q31: Indian Economy – Infrastructure & Industry
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. It is sourced from North Sea.
3. It does not contain sulphur.
Which of the statements given above is/are correct?
- (a) 2 only
- (b) 1 and 2 only
- (c) 1 and 3 only
- (d) 1, 2 and 3
Answer: (b) 1 and 2 only
Explanation
What "Brent crude oil" means
Brent crude is one of the most widely quoted oil benchmarks in global markets.
| Statement | Verdict | Reason |
|---|---|---|
| 1. It is a major classification of crude oil | Correct | Brent is one of the world's key oil benchmarks/classifications, alongside WTI |
| 2. It is sourced from the North Sea | Correct | Brent crude is extracted from fields in the North Sea |
| 3. It does not contain sulphur | Incorrect | Brent is a light, sweet crude — 'sweet' means low sulphur, not zero sulphur; it does contain a small amount |
Oil benchmark basics:
| Point | Detail |
|---|---|
| Brent crude | North Sea, light and sweet (low, not zero, sulphur) |
| WTI | West Texas Intermediate, the US benchmark |
| 'Sweet' | Low sulphur content, not none |
Answer: (b) 1 and 2 only.
Why each option is right or wrong
- (a) Incorrect. Statement 1 is also true — Brent is indeed a major crude classification.
- (b) CORRECT. Brent is both a major classification and North Sea-sourced; it is low-sulphur, not sulphur-free.
- (c) Incorrect. Statement 2 is true (North Sea origin), but statement 3 is false — Brent has low, not zero, sulphur.
- (d) Incorrect. Statement 3's claim of no sulphur is false; Brent is 'sweet' (low sulphur), not sulphur-free.
Key point
Brent crude: a major global oil benchmark, sourced from the North Sea, light and 'sweet' (LOW, not zero, sulphur content).
Remember
Brent crude: major oil benchmark, North Sea, light and low-sulphur ('sweet'), not sulphur-free.
Common mistakes
- Confusing 'sweet' (low sulphur) with zero sulphur.
- Not knowing Brent's North Sea origin.
- Mixing up Brent with the US benchmark, WTI.
Exam tip
'Sweet crude' = low sulphur, never zero. Any option claiming 'no sulphur at all' is a trap.
Sources
- Petroleum Planning & Analysis Cell (PPAC) — crude oil benchmarks note
- Intercontinental Exchange — Brent Crude Futures: contract specifications