UPSC (2026) Prelims MCQs: Oil, Geopolitics and Energy Security
Q1.
Which of the following maritime chokepoints handles around 20% of global oil consumption transported by sea?
(a) Strait of Malacca
(b) Strait of Hormuz
(c) Bosporus Strait
(d) Panama Canal
Answer: (b) Strait of Hormuz
Explanation:
The Strait of Hormuz is the most critical oil transit chokepoint in the world. Roughly one-fifth of global oil consumption passes through this narrow waterway between Iran and Oman.
Q2.
The Bab el-Mandeb Strait, frequently mentioned in global energy security discussions, connects:
(a) Mediterranean Sea and Atlantic Ocean
(b) Red Sea and Gulf of Aden
(c) Persian Gulf and Arabian Sea
(d) Black Sea and Mediterranean Sea
Answer: (b) Red Sea and Gulf of Aden
Explanation:
Bab el-Mandeb connects the Red Sea with the Gulf of Aden and serves as a gateway to the Suez Canal, making it crucial for oil shipments between Europe, Asia, and the Middle East.
Q3.
Consider the following statements regarding Strategic Petroleum Reserves (SPRs):
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They were originally created to address physical supply disruptions.
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They are now also used to stabilise oil market sentiment.
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Only oil-exporting countries maintain SPRs.
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
Answer: (a) 1 and 2 only
Explanation:
SPRs were initially designed for supply emergencies, but now they are also used to calm volatile markets. Importing countries like India, USA, Japan, and China also maintain SPRs.
Q4.
Which of the following factors can increase the landed price of crude oil imports for countries?
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Increase in shipping insurance premiums
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War-risk surcharges by shipping companies
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Diversification of crude suppliers
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Increase in tanker freight rates
Select the correct answer using the code below.
(a) 1, 2 and 4 only
(b) 1 and 3 only
(c) 2 and 3 only
(d) 1, 2, 3 and 4
Answer: (a) 1, 2 and 4 only
Explanation:
Higher insurance premiums, freight rates, and conflict surcharges increase the cost of transporting oil. Diversification of suppliers usually reduces risk, not increases price.
Q5.
Which of the following best explains why oil prices sometimes rise even when physical supply remains adequate?
(a) Declining demand for petrochemicals
(b) Financial speculation in oil markets
(c) Increased renewable energy production
(d) Decrease in shipping routes
Answer: (b) Financial speculation in oil markets
Explanation:
Oil is traded through futures, options, and derivatives, so prices may rise due to investor expectations, speculation, or geopolitical sentiment, even if supply is stable.
Q6.
Which of the following sectors continue to maintain strong dependence on oil despite the energy transition?
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Aviation
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Petrochemicals
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Road transport
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Renewable power generation
Select the correct answer.
(a) 1, 2 and 3 only
(b) 2 and 4 only
(c) 1 and 4 only
(d) 1, 2, 3 and 4
Answer: (a) 1, 2 and 3 only
Explanation:
Oil is still essential for aviation fuel, petrochemicals, and transport fuels, while renewable power generation does not depend on oil.
Q7.
Which of the following developments after the Russia–Ukraine conflict illustrates oil being used as a geopolitical instrument?
(a) Decline in global oil production
(b) Redirection of Russian oil exports toward Asian markets
(c) Closure of the Suez Canal
(d) Global ban on oil derivatives trading
Answer: (b) Redirection of Russian oil exports toward Asian markets
Explanation:
Russia continued exporting oil but shifted trade routes toward Asia, which increased shipping distances and financial complexities.
Q8.
Which of the following statements about India’s oil sector is correct?
(a) India is the largest oil exporter in Asia.
(b) India imports around 85% of its crude oil requirements.
(c) India does not maintain Strategic Petroleum Reserves.
(d) India’s oil demand has already peaked.
Answer: (b) India imports around 85% of its crude oil requirements.
Explanation:
India is the third-largest oil consumer and imports roughly 85% of its crude oil needs, making it highly sensitive to global price fluctuations.
Q9.
Which organization coordinates production policies among major oil-exporting countries?
(a) International Energy Agency
(b) Organization of the Petroleum Exporting Countries
(c) International Monetary Fund
(d) World Trade Organization
Answer: (b) Organization of the Petroleum Exporting Countries
Explanation:
OPEC is a group of oil-exporting nations that coordinate production policies to influence global oil supply and prices.
Q10.
Which of the following best describes the modern concept of energy security?
(a) Ensuring unlimited fossil fuel consumption
(b) Maintaining domestic oil production only
(c) Ensuring resilience against supply, financial, and logistical disruptions
(d) Eliminating global oil trade
Answer: (c) Ensuring resilience against supply, financial, and logistical disruptions
Explanation:
Energy security now includes protection from geopolitical risks, shipping disruptions, payment systems, insurance, and market volatility.
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