Previous Year Question
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?
2 only
1 and 2 only
1 and 3 only
1, 2 and 3
Correct Answer: B
Detailed Solution
Statement 1 is correct
Brent crude is one of the principal benchmark crude oils used for pricing crude oil in the global market. Depending on their physical characteristics and location, different crude streams may be priced at a premium or discount relative to benchmarks such as Brent.
Major global oil benchmarks include:
Brent: A principal benchmark for pricing European, African and Atlantic Basin crude oil.
West Texas Intermediate—WTI: The major benchmark for the US crude-oil market.
Dubai/Oman: Important for pricing Middle Eastern crude supplied to Asia.
Therefore, describing Brent as a major crude-oil trading classification or pricing benchmark is correct.
Statement 2 is correct
Brent was originally sourced from the North Sea, situated between the United Kingdom and Norway. The name “Brent” was associated with the original Brent oilfield.
Over time, the Brent benchmark ceased to be based exclusively on production from the original Brent field. Other qualifying North Sea crude streams were included to preserve adequate liquidity and reliable price assessment.
Its association with the North Sea is, therefore, correct.
Statement 3 is incorrect
Brent is described as sweet crude because it has a relatively low sulfur content. Low sulfur content, however, does not mean complete absence of sulfur.
Brent crude contains approximately 0.4% sulfur. The claim that it contains no sulfur is, therefore, incorrect.
Crude oil may be classified on two principal bases:
By density:
Light crude
Medium crude
Heavy crude
Density is commonly measured through API gravity. Crude with higher API gravity is relatively lighter.
By sulfur content:
Sweet crude: Low sulfur content.
Sour crude: Higher sulfur content.
Low-sulfur crude is generally easier and less expensive to refine into products such as petrol, diesel and aviation fuel. Sweet crude is consequently often regarded as higher-quality crude.
Brent is a light and sweet crude benchmark, but it is not sulfur-free. Therefore, Statements 1 and 2 are correct.
Current position (2026)
Brent remains one of the world’s most important crude-oil pricing benchmarks. The modern Brent benchmark, however, should not be understood as crude extracted from only one oilfield. It has evolved into a benchmark based on several qualifying crude streams and market transactions.
The fundamental conclusions remain unchanged:
Brent is a major crude benchmark.
It is historically and geographically associated with the North Sea.
It contains a small quantity of sulfur and is not sulfur-free.