New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-10-29
THE PETROLEUM MARKER

NEWS FROM THE FIELD AND RANGE OF PRICES
Before week is over the petroleum tradc Will
know with reasonable degree Of certainty what VIII
be the normal volume Of production when all the
obligations Of the shutdown agreement entered into
year ago between the Standard Oil interests and tho
organized producers removed On November
tho contract OF the rener and the producer for the
artificial curailment of the output will be al an end
and wells Will be opened up, pumped, agtated and
stimulated In many ways by the owners who have
sacrificed their temporary advantage In the hope OF
placing the industry In which they vitality inter-
csted upon stronger basis than existed twelve months
ago by means of the reduction of excessive STOCK
In using the term artificial do not mean 10
imply any reflection upon the common sense prin-
ciples OF business which inspired the agreement The
policy adopted by the producers was what would have
been pursued by any branch OF manufacturing thai
suffering nom the advantage given 10 pear
operators by surplus OF goods upoG the shelves.
That surplus has been reduced to an extent that
really the oil trade In need OF an assured source
OF new supply If the present rate OF consumption Is
to continue, and on that point there can hardy DC
dispute Of the proposition that 1t VIII not only con.
tinue but will expand. The increased activity OF
the drill testimony to the benefit brousnt to the
product which he has enjoyed this year. A premium
Of 20 cents per barrel for the yield OF Oh outside OF
price OF certificate oil that could not have been he'd
under other conditions, furnishes q return that has
given considerable satisfaction TO the producing In
ierest. The facts might even furnish basis for
legitimate bear argument were 1t not that every barrel
ing it, and profits Of any healthy mining industry muss
cover the depreciation of capital and property to re-
ton Of the shutdown agreement viewed from
commercial standpoint the prices obtained unoer J.
munerstion to the producer could DO advanced with
out inviting the charge Of excess or c1tortion;
November current production may be With all ne
old wells opened pumped s; ;,cr.. csn, s NV
amount TO much after the first rush OF accumulated
oil from the few wells that remain shut in. Tho .
e Rsss Wees not
ing to those who hope for new district Ciarons
prices into the eighties, have faded away The new
wells quickly drained the flow Of surrounding prop
themselves. There are other experimental wells In
Clarion, which may pile up new producnon. az mga
from its errac, unreliable and discouragng record 50
made. In other direction has the drill vet pre-
pipeline statistics leaves a wide margin for posi-.
biity of an increased production
ways to discourage the speculative support Of
tho crude situation All that can be said on this
pasny and the best to the trade that can
be given on this point IS the large capital and large
ing up commercial demand for Ohio oil for fuel pur'
The refined market has not been visited by the ac-
tivlty hoped for before now High freghts and tho
late break In crude keep the export demand dowo
to rally any of inquiry and the charter
gagements (Which average for October nearly $1,000
Of the output OF the petroleum country point to better
times before long. The pipeline runs to date average
81, 500 barrels day. against 1924 barrels In sep
tember: 494 barrels in October 1887; 1883 bar
re in 1856, and 60, l22 barrels in October 1855 Ths
deliveries average 1928 barrels against THAT bar
res in September; s42 26 barrels in october. 1887:
81 49S barrels In 1856, and 66,944 barrels In 1885
The official figures from October TO 25 Charters 10
the Goth were as follows:
Runs Deliveries deliveries Charters.
Total bbls 937503 19520S0 1,04A477 1919, -?
Av per day $1,000 1928 7L7e3 30, 1853
The crude oil speculation less active than In
tho preceding week. but IL reached fairly large proper
tions. There was pressure to cover shorts In the
early trading, which effected a rally Of over cents
to SO 3S cents and the decay Of the Clarion gshers'
kept steady tone in tho later dealings and gave the
bulls a chance 10 achieve occasional "squeezes' OF
tho short interest The rally. however, was used by
the weaker longs" to close UP accounts carried
through the panic of the previous week. and the bear
faction feels sufficiently confident Of the effect OF No
vember production to push the market Whenever an
opportunity offers The general effect OF election
uncertainties also tends to restrict operations on tho
long side Summarizing the speculative situation
perhaps IL must be confessed that the bears are tao
most aggressive and confident for the present, but
the commercial position is leaned upon by boiders
and upon possible recession In values there VIII
probably be an increased demand from investors.
The range Of prices and the total dealings In Ma
tional Transit certificates at the Consolidated Stock
and Petroleum Exchange for the last three weeks
were as follows.
n.e nat nat