1) What are the different categories of Oil found worldwide?

There are about 161 different types of Oil found worldwide. The different categories of Oil found
worldwide is classified into different types of crude oil like Brent, Dubai Crude, West Texas, Intermediate,
etc. Classification is done according to their sulphur content. In the global market, price of crude oil
is expressed for two varieties – West Texas Intermediary (WTI) and Brent. These two are
different in terms of the Sulphur content. In India, the Petroleum Ministry follows has a
different crude basket known as Indian Crude Basket.

How the price of Indian Crude Basket is calculated?

The Indian Crude Basket is a weighted average of the prices of Oman and Dubai sour crude
price benchmark; and the Brent sweet crude price benchmark. Crude oil with high amount of
Sulphur is termed as sour and with less Sulphur is called the sweet grade. Sour grade crude
requires extra processing cost.

2) Explain what is OPEC?

Organization of Petroleum Exporting Countries is also known as OPEC.

3) What is the purpose of forming OPEC?

It is a collection of countries which produces crude oil and is founded in 1960, in order to regulate the
process of export of their crude oil to the other countries of the world and to decide the crude oil prices.
Together OPEC’s 12 member countries supplies about 40% of the world’s oil supply.

4) Who are the members of OPEC currently?

Algeria Angola Ecuador Equatorial Guinea Gabon Iran Iraq Kuwait libya Nigeria Qatar Saudi Arabia
United Arab Emirates Venezuela
5) On what basis Crude Oil prices are determined?

Crude oil is a commodity, and the prices depend on the demand and supply

6) Who controls or decides the Oil prices?

OPEC does not decide the crude oil prices, though it influence the market prices. It is following exchange
market that decides global crude oil prices

• New York Mercantile Exchange ( NYMEX)

• International Petroleum Exchange in London (IPE)
• Singapore International Monetary Exchange (SIMEX)

7) How U.S dollar contribute to the rising Oil prices?

On the world market, oil is priced in U.S dollars. So, when dollar becomes weaker, foreign currency
becomes stronger, which means foreign countries can buy more oil at same amount of money. As people
in other countries start buying more, demand rises, and it drives up the price in dollars, which again
influence the price of oil in the global market.

oil drum (barrel) 55 gallon / 200L

oil and gas industry in India

The oil and gas industry in India dates back to 1889 when the first oil deposits in the country were
discovered near the town of Digboi in the state of Assam. The natural gas industry in India began in the
1960s with the discovery of gas fields in Assam and GujaratIndia produced 36.01 MTs of crude petroleum
in 2016-17. India accounted for 0.92% of world oil production in 2016-18.India imports 82% of its oil
needs and aims to bring that down to 67% by 2022 by replacing it with local exploration, renewable
energy and indigenous ethanol fuel (c. Jan 2018).[1]India was the fourth top net crude oil (including crude
oil products) importer of 163 Mt in 2015.[2]1

The Indian Strategic Petroleum Reserve (ISPR) is an emergency fuel store of total 5 MMT (million metric
tons) or 36.92 MMbbl of strategic crude oil enough to provide 10 days of consumption which are
maintained by the Indian Strategic Petroleum Reserves Limited