{"id":13825,"date":"2021-02-12T00:00:00","date_gmt":"2021-02-12T00:00:00","guid":{"rendered":"https:\/\/www.nextias.com\/current_affairs\/uncategorized\/12-02-2021\/brent-crude\/"},"modified":"2021-02-12T00:00:00","modified_gmt":"2021-02-12T00:00:00","slug":"brent-crude","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/12-02-2021\/brent-crude","title":{"rendered":"Brent crude"},"content":{"rendered":"<p><strong>In News <\/strong>-Recently, the price of <strong>Brent crude<\/strong> crossed the $60 per barrel mark.<\/p>\n<ul>\n<li>The price of Brent Crude has risen by over 50 percent since the end of October after prices had remained around $40 per barrel for five months.<\/li>\n<\/ul>\n<p><strong>Reasons for the rise in the price of crude oil<\/strong><\/p>\n<ul>\n<li><strong>Major oil-producing countries had cut oil production <\/strong>last year amid a sharp fall in demand due to the <strong>Covid-19 pandemic. <\/strong><\/li>\n<li>Saud Arabia cut its own oil production by 1 million barrels per day to strengthen crude oil prices.<\/li>\n<li>Expectations of <strong>strong improvements in demand <\/strong>with <strong>the global rollout <\/strong>of the <strong>Covid-19 vaccine<\/strong> have also put upward pressure on <strong>crude oil prices.<\/strong><\/li>\n<\/ul>\n<p><strong>Impacts on India &#8211;<\/strong><\/p>\n<ul>\n<li>The rise in the price of<strong> Brent crude<\/strong> will lead to an <strong>increase <\/strong>in <strong>India\u2019s import bill.<\/strong>\n<ul>\n<li>India imports <strong>80 percent of its crude oil <\/strong>requirements and the average price of the Indian basket of crude oil has already risen to<strong> $54.8 barrel for January.<\/strong><\/li>\n<\/ul>\n<\/li>\n<li>It will also put <strong>upward pressure<\/strong> on <strong>petrol and diesel prices <\/strong>across the country which is already at <strong>all-time highs<\/strong> due to the recent increase in <strong>international crude prices<\/strong> as well as <strong>high central and state levies.<\/strong><\/li>\n<\/ul>\n<p><strong>What is Brent crude?<\/strong><\/p>\n<ul>\n<li>Brent is actually a combination of crude oil from 15 different oil fields in the Brent and the <strong>North Sea areas<\/strong>.<\/li>\n<li>It is a reasonably \u201clight\u201d and sweet crude oil with API gravity of 38.3 degrees and about 0.37 percent of sulphur.<\/li>\n<li>It is one of three major oil benchmarks used by those trading oil contracts, futures and derivatives.\n<ul>\n<li>\u00a0The other two major benchmarks are <strong>West Texas Intermediate (WTI) <\/strong>and <strong>Dubai\/Oman<\/strong>, though there are many smaller oil varieties traded as well.<\/li>\n<\/ul>\n<\/li>\n<li><strong>\u00a0Brent Crude<\/strong> is produced near the sea, so <strong>transportation costs are significantly lower. <\/strong><\/li>\n<li>In contrast, West Texas Intermediate is produced in landlocked areas, making <strong>transportation costs more onerous<\/strong>.<\/li>\n<\/ul>\n<table border=\"1\" cellspacing=\"0\" style=\"width:624px\">\n<tbody>\n<tr>\n<td style=\"vertical-align:top\">\n<p><strong>Crude Oil<\/strong><\/p>\n<ul>\n<li>Crude oil is a naturally occurring, unrefined petroleum product composed of hydrocarbon deposits and other organic materials.<\/li>\n<li>\u00a0A type of fossil fuel, crude oil can be refined to produce usable products such as gasoline, diesel, and various other forms of petrochemicals.<\/li>\n<li>It is a nonrenewable resource, which means that it can&#8217;t be replaced naturally at the rate we consume it and is, therefore, a limited resource.<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><a href=\"https:\/\/indianexpress.com\/article\/explained\/crude-oil-price-rise-explained-7181078\/\" target=\"_blank\" rel=\"noopener\">Source: IE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In News -Recently, the price of Brent crude crossed the $60 per barrel mark. The price of Brent Crude has risen by over 50 percent since the end of October after prices had remained around $40 per barrel for five months. Reasons for the rise in the price of crude oil Major oil-producing countries had [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":13826,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-13825","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2023\/07\/2793129current-affairs-3-2.jpg","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/13825","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=13825"}],"version-history":[{"count":0,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/13825\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media\/13826"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=13825"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=13825"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=13825"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}