The Wheeling daily register. [volume] (Wheeling, W. Va.) 1864-1878, 1867-07-24
FINANCE AND TRADE
Pro.pecrs Of the Petroleum Trade

Prospecis of the Petroleum Trade
We clip the following from the Pitts
burg Commercial Of yesterday: A prom
inent oil broker of this city has pre-
pared the following relative to the
prospects of the petroleum trade, his
views being shared by dealers here gen
orally
After two Years decline, the price OF
petroleum reached its lowest point dur
ing the month of June, when 1t was
sold i'll Philadelphia rs low as nineteen
cents per gallon; a strong reaction TOOK
place during the present month when
brought the price again to thirty ana
,hirty-iive cents, and which Will lead,
in ali probability, to continuous and
steady advance, as the present pr0duc-
ton and consumption are too much out
of proportion with each other to allow
she present low rates to go Oh any
longer.
We must not allow ourselves TO be
deceived by the stocks ON hand ut this
moment. They represent the aecumu-
latiou of oil produced during the DUH
months and long days. The demand for
petroleum is generally double during
the six months from July to December
from what il is from January to July,
because the greatest part OF the WINTER
stocks are laid in in the fall, and all
principal shipments by river must take
place before cold weather sets in. There's
fore, if Europe has already taken III this
wear something like thirty millions OF
gallons, she is likely to take in the next
six mouths, fifty millions more from us,
which is equal to 200 900 barrels. Add
TO this, the home demand with 6OO,OOO
barrels, aud it will be seen that
we will be called Oh TO deliver IN the
coming five months the enormous
amount of /, 100000 barrels refined. TO
furnish this amount we have the stock
of Plttsburg, Oil Region, Cleveland,
New York, Philadelphia, etc, i'll all
equal to 100000 barrels refined oil; and
moreover the production which most
likely will not acreage more than about
7, 900 to 500 barrels crude oil per day
for the balance of the year, which would
give mt the very outside SOO,OOO refined.
The total amount we can furnish would,
therefore, only be l,7OO,U barrels, and
by January |, lS6S, we would not have
a single sarrcl left rs stock IN this
country. Europe would be the only
place where stock could DO found. The
true state of affairs may be expressed
thus:
CONSUMPTION in 1850, during the fall
months, 1900 barrels refined oil day.
Production during the same time,
from $1,000 to Is, 900 barrels crude oil
day. .u
Consumption in 1867, during the fall
months, 10000 barrels refined oil day.
Production during the same time,
from 1000 to 1870 barrels crude oil u
day.
In 1866 the production ontstripped the
consumption by 6,00O To 1000 barrels
crude every day. In 1867 the consump-
ton outstrips the production by ut least
zoo barrels a day. In 1866 prices
could not help but decline. In 1867
prices cannot help but ddrdRce.
Hence it will be seen that 1T the same
tine that the consumption largely Ill
creased, our production decreased i'll d
still greater ratio, and is now entirely
inadequate Tor present wants. BY the
end of this year, the large stock which
till now depressed the marker, vii
nearly everywhere be used up, aud mex
year will bring actual scarcity. The
supply will hardly be sufficient for oul
home consumption.
This is the true state of affairs, and
under such circumstances, oil is certain
ly the cheapest article III the market
! Stocks that We now sell SO laN ishly a
reduced prices to foreign countries vii
bo worth double what they now are be
fore three months arc over.
Pittsburgy Pa, July 1857.