Q. The term ‘West Texas Intermediate’, sometimes found in news, refers to a grade of
a) Crude oil
b) Bullion
c) Rare earth elements
d) Uranium
Correct Answer : a) Crude oil
Question from UPSC Prelims 2020 GS Paper
Explanation:
What is West Texas Intermediate?
West Texas Intermediate is a specific grade of crude oil and is used as a benchmark in oil pricing. It is considered a sweet light oil, which means it has a low sulfur content and a relatively low density. This quality makes it an excellent candidate for refining into gasoline, diesel, and other high-demand products.
Origin and Comparison
WTI is primarily sourced from the U.S., particularly from Texas, and its price is often compared to Brent crude, another major benchmark crude oil from the North Sea. The pricing of WTI is a critical indicator in the oil market and influences global oil prices.