Step 1: Recall the fixed size of an oil barrel.
In the oil industry, one barrel is a set unit equal to 42 US gallons, used worldwide for pricing and trading crude oil.
Step 2: Convert gallons to litres.
Since 1 US gallon is about 3.785 litres, multiplying gives \( 42 \times 3.785 \approx 158.97 \) litres for one barrel.
Step 3: Match this figure to the closest option.
Among 200, 150, 120, and 160 litres, the value 160 is nearest to the actual 158.97 litres, while 200 litres actually describes a separate standard storage drum, not the oil barrel.
Final Answer:
A barrel of oil is approximately 160 litres, so option D is correct. \[ \boxed{160 \text{ litres}} \]