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Q31 (IAS/2011) Economy › External Sector & Trade › Global trade patterns Answer Verified

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/ correct?

Result
Your answer: —  ·  Correct: B
Explanation

Brent crude oil is a major classification and global benchmark for crude oil prices, used to price approximately two-thirds of the world's internationally traded oil. It is primarily sourced from a collection of oil fields in the North Sea, including the original Brent field, Forties, Oseberg, Ekofisk, and Troll (collectively known as the BFOET blend) [2]. While Brent is classified as a "sweet" crude oil, this does not mean it contains no sulphur; rather, it has a low sulphur content, typically around 0.37% to 0.5%. In the oil industry, "sweet" refers to crude with less than 0.5% sulphur, whereas "sour" refers to higher concentrations [1]. Therefore, statement 3 is incorrect because Brent does contain a small amount of sulphur, making statements 1 and 2 the only correct ones.

Sources

  1. [2] https://en.wikipedia.org/wiki/Brent_Crude
  2. [1] https://www.rba.gov.au/publications/bulletin/2012/sep/pdf/bu-0912-8.pdf
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