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The hundreds of different flavors of oil.

From Marketplace, I'm Sabrina Banishore.

There is some optimism in oil markets that the U.S. and Iran could be talking again soon.

The price of Brent crude is now under $95 a barrel.

That, though, is just one type of oil, and there are many. Fernando Valley is managing

director of energy for hedge-eye risk management. Fernando, great to have you back. Happy to be here,

Sabre. Okay, I wanted to clear something up just right off the bat here. We hear about how oil is a global

market, supply shortages in one place affect others, And yet, if you try to look up the

price of oil, there is not just one price. Or there's like 150 plus, although the two we hear

about most are West Texas intermediate and Brent crude. Why are there so many oils at different prices?

And which ones should we care about? Oil is not as homogeneous as you would expect.

Every type of oil will have an inherent yield, which it means when you process a barrel of oil,

it's not all going to be gasoline.

It's not all going to be diesel.

And then on top of that, you have locations.

So Brent is actually an oil field in the North Sea in the UK.

Currently doesn't produce much at all, but it's used more as a financial benchmark.

Whereas WTI, the contract is for physical delivery off crude in Cushing, Oklahoma.

Got it.

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