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 the north sea. 3. It does not contain sulphur. Which of the statements given above is/are correct?

QUESTION

Hard

Economy

Prelims 2011

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 the north sea.
It does not contain sulphur.

Which of the statements given above is/are correct?

Select an option to attempt

Explanation

Brent crude oil is indeed a major classification of crude oil, which makes statement 1 correct. It serves as a benchmark for global oil prices and is used to set prices for a significant portion of global crude oil.

Statement 2 is also correct. Brent crude oil is sourced from oil fields in the North Sea, between the Shetland Islands and Norway.

However, statement 3 is incorrect. Brent crude oil does contain sulphur. It has a sulphur content of 0.37%, which is why it is considered less "sweet" compared to West Texas Intermediate (WTI) oil, which has a lower sulphur content of 0.24%.

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