The Wheeling daily register. [volume] (Wheeling, W. Va.) 1864-1878, 1867-07-20
THE FUTURR OF OIL.
Prospect. for the Balance Of 1861.

! The editor Of the Oil City Petroleum
referring to the receut advance in Pe'
troleum, gives his views in relation to
the business for the next six months,
promising that the present rise is
legitimate one, and that fairer prices
will rnle hereafter. He says: Our rea-
sons for the above conclusions are based
upon the foreign shipments for 1866, the
same for the first ST., months of l-61,
the production, and the amount of oil
required for 0ur own home cOnsump-
ton. The entire foreign shipments of
petroleum for 1866, footed up over l,7OO,-
600 barrels, crude and refined. The
shipments for the first six months
! of 1866, are exceeded by those of the
same period in 1867, by about $4,000
barrels, the shipment of each period
amounting to over 60O, 900 barrels. If
the shipments for the balance of 1867
correspond with the same period of 1866,
it will require nearly 100000 barrels
during the next six months to make up
the am unit shipped in 1866, or about
2O0, 900 barrels per month. 1t is fair TO
presume that most of the oil shipped
for the balance of 1867 will be refined.
Estimating three barrels of crude as
only equal to two of refined, the amount
of crude required to fill the orders for
refined will be about 100000 barrels
per month, requiring daily produc-
ton of 10000 barrels for 1861.
We think the amount of petroleum
needed for foreign shipment during
1861, will he fully as great as for 1866,
and cannot help being of the opinion
that it will be greater. The average
price of same for first six months of
1867, has been from "a to 20 cents per
gallon. 1t would seem strange indeed,
if this material reduction in the price
did not have tendency to increase
shipments. We are further con-
vinced of the correctness of our
views from the fact that on the
first day of the present month, ves-
sells were on berth in the ports of Phila-
delphia and New York, requiring the
estimate cargoes of 10000 barrels. By
q strange coincidence prices improved
about the same time, and are still of an
upward tendency. The rise in prices
would seem inexplicable if there was
so great an abundance of oil on hand,
as has been represented. We are i'm
PEELED to the belief, therefore, that the
rise in price is not particularly owing
to any reported or real superabundance
of the article now in the hands of
dealers.
From the most liberal estimates, we
are led to believe that the present daily
produc ion of petroleum will hardly
average eight thousand barrels per day.
This will create a serious deficiency if
the same amount is wanted by our for
eign friends for the present as for the
last year. 1t is believed that sufficient
orders have been sent On by foreigners
to fully cover the amount of last years
shipments. This amount has been PROM
ised 20 the shippers by the spectators
for the different months in the balance
of 1867, at stated prices. Ii the oil can
not he obtained, the SPECTATORS will
have to pay the difference or go to
the wall. Hence great effort is
being made by this class of dealers 10
forestall the prices for not only all of 1867
but also of 1866, in order to save them
selves. While admitting that some of
the sales made for future delivery are
as real as any such sales can be, We are
confident that the majority havo been
bopns arrangements. In but compara-
lively few cases have contracts for fu-
ture delivery Of petroleum been filed,
when so great time was allowed to
elapse. The contractor for future de-
livery of oil in 1863 and 1864, at two
dollars per barrel, were not little
astonished to find the market rates
ranging from six to eight dollars per
barrel at the time of delivery. What
has been may be again.
But to resume, it ID claimed that for
our own home consumption from l,0O0,-
600 to 100000 barrels of petroleum
will be required. This will take more
than the surplus claimed by some par
ties to be on hand at the present time.
In view of the above statement it is
certain that the probabilities for an ad-
vance in the prices of petroleum are de-
cidedly flattering. The large exports
of the past and present year show the
trade to be in n sound condition. We
do not look for any material addition to
the daily production for the present
wear. The large amount of litigation
involved by the failn.e of different oil
companies IS, as well as of the great de-
preston of the times, are not to an
alarming extent favorable to extensive
developments requiring considerable lie
ready cash.