Connect With Us
Register
Login
Barrel (bbl) definition
A barrel, abbreviated bbl, is the standard unit of volume for crude oil and equals 42 US gallons, or about 159 litres. Crude oil prices are almost always quoted per barrel, so the unit underpins how the market measures and values oil.
When crude trades at a given price, that figure refers to one barrel, so a quote of 80.00 means 80 US dollars for 42 US gallons. Production and storage volumes are also expressed in barrels, often as barrels per day for output and millions of barrels for inventories.
Keep in mind that a barrel measures volume, not weight, so it should not be confused with tonnes, which some other commodities use. The oil barrel of 42 US gallons also differs from the 55 US gallon steel drum often pictured alongside it.
Barrel (bbl) Example
You read that a position covers 1,000 barrels of crude. Since one barrel equals 42 US gallons, that position represents 42,000 US gallons of oil.
1 barrel = 42 US gallons (about 159 litres)
Get Started!
Sign up and access the Global Markets in less than 3 minutes
The information provided on this website is of a general nature only and does not constitute personal financial advice. Before acting on any information on this website, you should consider the suitability of the information in relation to your objectives, financial situation and needs. Investing in CFDs and FX Margin Contracts carries significant risks and is not suitable for all investors. You may lose more than your initial deposit. You do not own, or have, any interest in the underlying asset. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading. It is important that you read and consider the disclosure document before you acquire any product listed on the website. The information and advertisements offered on this website are not intended for use by any person in any country or jurisdiction where such use would be contrary to local laws and regulations. The Products and Services offered on this website are not intended for residents of the United States, Malaysia and Thailand.
TMGM is authorized and regulated in various jurisdictions.
Trademax Australia Limited, trading as TMGM, is regulated by the Australian Securities and Investments Commission (ASIC), AFSL no. 436416 and is located at Level 28, One International Tower, 100 Barangaroo Avenue, 2000 Sydney, NSW Australia.
Email: support@tmgm.com.au
Trademax Global Limited, trading as TMGM, is authorized and regulated by the Vanuatu Financial Services Commission (VFSC), registration number 40356 and registered at 1276, Kumul Highway, Port Vila, Vanuatu, Republic of Vanuatu.
Email: support@tmgm.com
Trademax Global Markets (SE) Limited, trading as TMGM, is authorized and regulated by the Financial Services Authority (FSA) of Seychelles, with license number SD224. The company is registered at Office No 13, Providence Estate ABIS Centre, Mahe, Seychelles.
Email: support@tmgm.com
Trademax Global Markets (International) Pty Ltd, trading as TMGM, is authorized and regulated by the Financial Services Commission, Mauritius (FSC) with license no. GB22201012, and registered at 33, Edith Cavell Street C/o IQ EQ Fund Services (Mauritius) Ltd Port Louis, 11324 Mauritius.
Email: support@tmgm.com
Copyright © TMGM. All rights reserved