Question

UPSC Prelims 2020 Question:

The term 'West Texas Intermediate', sometimes found in news, refers to a grade of

1. Crude oil
2. Bullion
3. Rare earth elements
4. ranium

Answer (Detailed Solution Below)

Option 1: Crude oil

Detailed Solution

Explanation:

West Texas Intermediate (WTI) is a specific grade of crude oil. It is one of the main three benchmarks in oil pricing, along with Brent and Dubai Crude. WTI is known as a light sweet oil as it contains sulphur between 0.24% and 0.34% and has a low density (specific gravity), making it light.
It is sourced primarily from inland Texas and is one of the highest quality oils in the world, which is easy to refine.
WTI is often compared to Brent crude, which is an oil benchmark for two-thirds of the world's oil contracts based on oil extracted in the North Sea.

Therefore, option (1) is the correct answer.

Subject: Geography | Energy Resources

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