New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-10-22
THE PETROLEUM MARHET.
NEWS FROM THE FIELD AND


THE PETROLEUM MARHEE
NEWS FROM THE FIELD AND RANGE OF PErcrs
What little short OF revolu ion backward
occurred week In the crude oil speculation and
stagnatiOn broken, not by the advance which
expected by the best elements of the trade, but by
sudden fall Of from the highest price
Of the week. For The first time In about two months
values dropped into the eighties and reached pont
only about cents above the lowest price OF tho
year. Various theories Of the break were advanced
ly the trade but it needs the least complicated
for its explanation. One Of those field surprises.
for which the petroleum Industry, like any other
mining business Is notable, happened In the Clarion
disl.ci and precipated heavy selling upon market
hare OF public support. 1t is idle to attempt to
tciile the developments in this field, which
threatens to assnme prominence that but few OF its
friends crede ed to IT, The two wells opened
the middle OF the week not Only OF gusher'
magnitude In themselves, but they Indicated
extension Of fertile territory presumably of the sans
gushero Order The revival OF this field at
most inopportunc time also. for the termination Of
the shutdown this month presents at least tbs
possibility OF temporary Increase in the gnrral
volume Of production. The every feature of tho
field news was OF a sensat!onally beassh character
and 1t therefore remarkable that many old aud
experienced producers wholly unprparci for
tho Clarion developments, while the scout empoyed
iy the Consolidated Stock and Petroleum Exchange. TO
furnish field CO for the benefit Of all operators,
left that district on the eve OF tho opening OF
ventures which the petroleum country p.ess should
have warned him were Of Importance. Now let Us
see upon what kind of market this surprising news
fell For weeks past the Western operators have
been selling oil, at times, when the market abl,
TO absorb It, in foods. There scattered long
I'M crest of size, but Insignificant eompl,d
with the promsc holdings that often have rendered
be m rlfpt he
indicate short interest of great magnitude and II IL
now evident that the free sales by many OF ths
western producers OF anticipated production from
the Clarion fed. Refined OIL beginning 10
improve It IS true. bnt the demand had not attained
vigorous prvpor. ions. Wall Street and the West
refused TO take ssve bull attitude, and values
Of crude were deriving their whole strength from the
commercial position \ rush of new oil from tho
ground that In two days ran the yield OF ono
pool up from 1000 to 5000 barrels day, turned
every Spectator into seller in market whero
only buyer was left-the STANDARD OIL Company.
1t would be beyond human na'ure 10 expect the ons
buyer TO bull prices bear
considerable space has been given to the genesis
Of last weeks break for a correct appreciation Of
1t Will throw some light the future looked upon
from standpoint OF legitimate movements. 1t VIII
not do, have said, TO undeTate the possib
ties OF the Clarion po)l-)nly the drill measure
them. But there Is occasion for the proonsation
outlook Tie pipeline shipments exceed
ing the by nearly II, 900 barrels day, that
II would require gusher' field Of remarkable pro-
portions prevent the continued rapid depletion Of
stocks above ground Tho approach Of winter brings
increased difficulty and expense In using the dill.
while with 1t comes the maximum of the consuming
The foreign trade would be free buyers to-
day II they could secure contracts from refneIs at
the ruling reduced quotations; 1t is, the charter
engagements amount 10 about onc-sxih more than tho
entire production. The interest of the reiner at
this season is normally opposed to depression in
crude aud the bulk of certificates held by persons
could by any Locking up OF them practically
ner the speculative exchanges. laron has been
full OF disaprolnmens a. well a. OF surprises agree
abic to the producer there, but IT could assume it,
new phase at no stronger time in the commercial sea-
son and On no better statistical position than exists
to-day.
lne pipo line runs for October to date average
3I,l,6 barres a day. against 2.29i barrcls last
month; 62,iot barrels in October, 1857; 1888
baries IN Oc,ober, loo0, and barrels ia loo5.
compared vita an average o. 77l47 barrels in sep
temIer; s42-5 barrels IN October 1857 - 4os bar,
figures from october 1 TO IS (charcrs to the 10th,
were as follows
r,,,, ,,,. q Run. Delivers. dsi Ss;is Charter:
Az per day 37166 7s,si0 AGA 1920
Inc ersd rude oil market closed week ago with ndi.
ons Side Ina. Lv nawe SsS 10 be on the
Monday with further and persistent selling move.
values down from 81 $3.50 cents to % So 90 asa
c2 "a cents. The flood OF oil fiom Western operators
seemed TO have no end ard It was marvel how 10
was absorbed this MAJ ket without causing moro
weakness. Wednesday night the first CLARION
" gusher' opened and Thursday its nechbOr followed.
The first effect OF tho appeared to paIalyze tho
speculation and transactions shrank to pary figures.
Inc panic came the next morning and within two days
INC transactions at the two Exchanges here amounted
10 1906 600 barrels out of total record Of
i.,oi4ooo barrels. From 81 5s prices
tunbled TO S3 IL cents and the last quotat on was
only IL cents above the lowest figure. The market
closed unsettled and partly demoralized. Field news
WIN exert on important influence upon IL for son,e
'lme But there has been a thorough long liquidation
ana an immense addit on 10 the short interest. OH
mas reached stronger hands and its friends will null
'pN on any further reaction. Certificates placed
where they be cOrnced az the will of owners and
overseiling IS the greatest danger confronting
the speculat on.
The range of prices and the total dealings in Ma
uonal Transit certificates at the Consolidated Stock
ana Petroleum Exchanges for the last three weeks
were as follows:
Week ended Oct o. Oct 49, Oct 70
Highest 90 Is o5 Ia 9s
Lowest % 81 7.S S3l-2
Final -: 92id 9ss1 So
Sales at Stock Ex ao79ooo sos9 900 5i4sooo
Total berrcls roi5s 600 iiioo 600 l7oi4coo
The refined market slackencd last week on the
early weakness IN erudo and on the Generalization Of
the latter speculation quotations were reduced 3.s
cert to 7 3S cents per gallon at all roits.