Daily Brent and West Texas Intermediate (WTI) crude prices in USD per barrel ($/bbl) are converted to USD per tonne in order to provide a way to compare bunker prices with crude in a like-for-like format.
A barrel of crude oil is equivalent to 35 imperial or 42 U.S. gallons, or 159 litres, or 0.159 cubic metres. This standard volume for crude oil measurement dates back to August 1866, when oil producers met in Titusville, Pennsylvania, and agreed that 42 gallons would constitute a barrel of oil.
Brent crude prices are converted from barrels to metric tonnes at a rate of 7.54 per metric tonne. This is calculated using Brent's American Petroleum Institute (API) gravity of 38.06 degrees within the formula below.
Formula:
(38.06 + 131.5) / (141.5 x 0.159) = 7.54
Example:
Brent price in $/bbl = $100
Brent price in $/MT = $100 x 7.54 = $754/MT
WTI crude prices are converted from barrels to metric tonnes at a rate of 7.60 per metric tonne. This is calculated using WTI's American Petroleum Institute (API) gravity of 39.6 degrees within the formula below.
Formula:
(39.6 + 131.5) / (141.5 x 0.159) = 7.60
Example:
WTI price in $/bbl = $100
WTI price in $/MT = $100 x 7.60 = $760/MT
See also: