Arguably, the most important commodity in the world today is crude oil. The product and its derivatives made their way into virtually every application of modern life from transportation to plastics. This vital commodity also dominates politics in many parts of the world and ensures that some top producing nations have outsized influence on the world stage. In light of this, many might assume that most investors know everything about the product and how it trades around the globe. However, that is not the case, as there are several misconceptions about the various types of oil and how this commodity is priced [see also USA Oil Reserves: The World’s Largest?].