Question 90 from UPSC CSE 2020 - CURRENT AFFAIRS

Question

The term 'West Texas Intermediate', sometimes found in news, refers to a grade of

IASCODEX · Accepted Answer

Correct Option: A. Crude oil

Strategy: Spotting the phrase 'West Texas Intermediate' is key--it is frequently seen in economic and market news related to oil prices. Ignore options like bullion, rare earths, and uranium, since 'West Texas' contextually hints at oil fields and not metals or nuclear fuel. This directly points to crude oil.

Key Info: ## West Texas Intermediate (WTI) Overview

West Texas Intermediate (WTI) is a specific grade of crude oil that serves as a global benchmark in oil pricing. It is characterized as 'light, sweet' due to its low density and low sulfur content (approximately 0.24%).

WTI is primarily sourced from oil fields in Texas and refined mostly in the Midwest and Gulf Coast regions of the United States. It functions as a benchmark alongside Brent Crude and Dubai/Oman Crude in international oil markets. Futures contracts for WTI are traded on the New York Mercantile Exchange (NYMEX), and its pricing significantly influences global oil markets.

### Contrasting Terms

*   **Bullion** -- Refers to precious metals like gold and silver, measured in bulk.
*   **Rare Earth Elements** -- A group of 17 chemically similar elements essential for electronics and advanced technologies.
*   **Uranium** -- Primarily used as fuel in nuclear reactors.

WTI's significance is evident in its role within energy economics, macroeconomic indicators, and global energy geopolitics.

IASCODEX · Answer

Option B: Bullion

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Option C: Rare earth elements

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Option D: Uranium