Oil Price Per Barrel

The oil price per barrel is a common way to measure the value per amount of crude oil. A barrel of oil is equal to 42 US gallons, 158.9873 litres and 34.9723 UK imperial gallons, and in the recent past, a barrel of oil has been traded as low as US $16 per barrel with highs reaching over US $140 per barrel.

Not all countries measure oil in prices per barrel, and oil is rarely transported in barrels anymore. However, it is a commonly accepted benchmark for trade, and the barrel has its historical basis in the Pennsylvanian oil fields of the late 1800s.

Back then, no standardised barrels were in place, but 40-gallon whiskey barrels were in ready supply. Other barrel sizes were also in use, but eventually the 42-gallon barrel was established to promote fair trade. The extra two gallons on top of the first 40 was put in place so that the amount would always tip in favour of the buyer.

Oil tankers and pipelines are used to transport much of our crude oil today, and it is estimated about half a barrel of oil is converted into petrol while the remainder forms various by-products including jet fuel and kerosene.