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UPSC Prelims 2020 Paper-1 📅 04 Oct, 2020

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
Result Summary
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UPSC Prelims
2020 • 04 Oct, 2020 • Paper-1
The term 'West Texas Intermediate', sometimes found in news, refers to a grade of
Correct Answer
Crude oil
Commodity Classification: West Texas Intermediate (WTI) is fundamentally a highly specific, premium grade of crude oil extracted from wells primarily located in......
Ref/Book : UPSC Prelims 2020
Ref. Subject Economy
Chapter -
Ref. Topic Commodities
Pg. No -
💡 Analysis & Explanation
Commodity Classification ▼
West Texas Intermediate (WTI) is fundamentally a highly specific, premium grade of crude oil extracted from wells primarily located in the United States.
Role as a Global Benchmark ▼
In global financial, energy, and commodities markets, WTI serves as one of the three primary pricing benchmarks for oil, alongside Brent Crude (extracted from the North Sea) and the Dubai/Oman benchmark.
Chemical Desirability ▼
It is scientifically renowned for being 'light' (having a low density that allows it to flow freely) and 'sweet' (possessing a very low sulfur content). These characteristics make it highly ideal, cost-effective, and efficient for refining into high-demand products like gasoline and diesel.
Conclusion ▼
The term explicitly and exclusively categorizes a globally traded benchmark of crude oil.
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