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Consider the following statements:
1. Brent crude oil originates from oil fields in the North Sea between the Shetland Islands and Norway.
2. Brent is the benchmark for oil prices in India.
3. Cost of shipping for Brent crude is typically lower.
Which of the statements given above is/are correct?
  • a)
    1 only
  • b)
    2 only
  • c)
    3 only
  • d)
    1, 2 and 3
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements:1. Brent crude oil originates from o...
  • Brent crude oil originates from oil fields in the North Sea between the Shetland Islands and Norway. Hence, statement 1 is correct.
  • West Texas Intermediate (WTI) is sourced from US oil fields, primarily in Texas, Louisiana, and North Dakota.
  • Cost of shipping for Brent crude is typically lower, since it is produced near the sea and it can be put on ships immediately. Hence, statement 3 is correct.
  • Shipping of WTI is priced higher since it is produced in landlocked areas like Cushing, Oklahoma where the storage facilities are limited.
  • Brent crude price is the international benchmark price used by OPEC while WTI crude price is a benchmark for US oil prices.
    • Since India imports primarily from OPEC countries, Brent is the benchmark for oil prices in India. Hence, statement 2 is correct.
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Community Answer
Consider the following statements:1. Brent crude oil originates from o...
Origin of Brent Crude Oil
- Statement 1 is correct. Brent crude oil is indeed sourced from oil fields in the North Sea between the Shetland Islands and Norway.

Benchmark for Oil Prices
- Statement 2 is incorrect. While Brent crude is a widely used benchmark for oil prices globally, it is not specifically the benchmark for oil prices in India.

Cost of Shipping
- Statement 3 is correct. The cost of shipping for Brent crude oil is typically lower due to its proximity to major refining markets in Europe, which reduces transportation costs.
Therefore, the correct answer is option 'D' as all three statements are accurate.
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Consider the following statements:1. Brent crude oil originates from oil fields in the North Sea between the Shetland Islands and Norway.2. Brent is the benchmark for oil prices in India.3. Cost of shipping for Brent crude is typically lower.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)3 onlyd)1, 2 and 3Correct answer is option 'D'. Can you explain this answer?
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