New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-09-03
TIE PETROLEUN MARKET

| NEWS FROM THE FIELD AND RANGE OF PRlCES
1t IS almost thankless task TO cal attention 10
the features OF tho petroleum situation winch would
sccm TO warrant much higher Prices largc short
| interest, compared with tho volume OF certificate Or
rncrchantable oil anoat Is evident I'm the sustained
borrowing demand Of certificates at rates which would
m. erlst IL the outlook considered uniayOrabo
70 higher prices and therefore Induced free lending
D, holdings The investor In oil usually prefers 10
enjoy bank accommodations. even at the risk OF IN
creasng the cost OF his purchases to decided extent
rather than trust to the uncertainty Of securing his
roods when he needs them from the borrower lie
b,a made his Investment with the idea Of rcapng
towards not TO be measured by an upward movement
q, few cents II he Is correct In his judgment OK
tho probabilities Of the future. tho saving OF carr. hs
charges between what the bank would demand ana
vh,t como floor trader would be willing 70 DO In order
IN secure certificates for delivery, counts Tor to
when contrasted with the possibility OF being unaDl'
IN Get hack his loaned oil when he wants H. While 10
NAV he true that al times mauipuaiions are attempted
in carrying for the purpose Of Ioios eo'ci"]
Of shorts and that under such c!icuihS '1Hocs my
NAV be indicative OF speculative collapse or reaouoh.
It IS also true that high premiums FOR mo iehIhs %
certificates do not themselves indicate an unhealthy
condition OF speculative affairs The CONDITION ot ma
loan market I'm oil has for time carried all ths
GUIDANCE. that certificates are lodged In strong hands
and cannot become available for temporary purposes
10 the operators for fall, much less eher d. aNOr
TO assist sellers of phantom or anticipated piod"uoh
to proyoke depression that will enable short contracts
to be covered at profit
Leaving out Of consideration the needs OF snort IN"
forests to rel eve the pressure upon their position tho
foreign trade objects to the presenatoh Oh OuHNn
statistics because It realizes that Is Dounn 10 equ'
heavy amount of American oil ana The various proi-
ucs of Il before the export season eius, anu ha'uIaJ
the exporter TO secure the lowest pos'DF pfo''
Added 10 the speculatively short party and the Tor
Is "A Is
among the producers which believes that It's best ~
ercsts are served by depression in crude IN oiHf ID
encourage temporary contests IN me rehheu u~N'
that usually have but result and one mat 'He'''
no change I'm the relations OF the refining ana me pro"
ducina branches of the trade while ia Ing TO help no
ia;Ter So far as be learned, however 'he miners
Of oil now are the main, sol dfyins their ih'cieS'
in order 10 secure an independence which is not ~S
to be injured by profitable prces for the crude ar'
1t is hard to how the real interests OF me Western
producer can be otherwise than IN unison Win al ''
vance I'm crude, but whether they are or nor, INIT"
are features in the situation which pom IN mo
direction of better values. Speculation hngllsA
because tic general public refuses to recognize INC
changes that have occurred in the position OF cruds
within two years the Indifference OF speculation
furnishes no valid argument aga nst the lsc's VI 'u'
case Using round numbers and making estimates
closely where necessary, the runs rom INC VIM io
tho first eight months Of this year have reached Inc
tho OUTPUT of the same period of year ago OF nearly
5000 900 barrels. Owing partly TO an accumulation
OF stocks at the seaboard the shipments OF OIL Tor
the eight months Of 1883 have Deeh aDVu'
l. 900 900 barrels, decrease OF over lVoV;OVo par
res In spite Of the dmInuton Of the shipments or'
roughly speaking, the urgent consumpt ON mere N@'
been using up Of net stocks Of oil on hand OF over
600 600 barrels Production IS shrinking at ras
that promises even a rapid depletion Oh STOCKS
through tho winter and the different strikes OF new
supply hero and there have been disappointing am
trivial when compared with the aggregate iho'9
mcnts OF the petroleum trade. Europe, having To-
lied upon two years OF unexpected discoveries n no
oil region and also calculating upon discussions in ITO
trade I kelly to embamass any movement toward
higher prices has permitted lis stocks to run down
to figures that allow 1t margin for any uncNprctel
demand from consumption. Russian c0mpett on mas
been restrained by the failure Of schemes FOR an Ell
largement OF importation facilities, and the pro'reco
Of exhaust on of the present producing helds has
been moro than suggested by careful observers. IA
travaeant a. It may seem even to enthusiastic a.
vocatcs Of higher values 10 suggest TROLLING o 10
value of Pennsy lyanla crude oil within 4 few months,
Is not be wondered that one of tie best AhoNh
oil men in the uade should express himself as c"-
rhatically as he did few days ago IN Nfsttfl
newspaper in depicting II aarmist c0lors the d'cIn-
ing tendency Pennsylvania production and look
TO Ohio oil a future and wholesome check 10
an oppressive rise in prices. 10 the hunter atef
every speculative variation n prices or to The COM
mercal buyer who has fill supplies for only short
period the influences that daily affect values are x
supreme importance, but to the Investor whose m
tcress are more permanent there Is an appreciate
significance reminders Of features that are recos
nized by many Of the best informed leaders n oil
The certificate market last week fulfilled the prom
ise OF carly Improvement shown at the close OK
the previous week. Prices from 30 10 81 Il
cents, broke 30 IL cents and then quickly rallied
o. rs EealiZatiOus and attempt TO manu-
facure 2 scare on field provoked later ureak
to 50 SO cents. but when there was an attempt to
acquire goods prices moved easily 10 the best point
Of The weck-93 IL cents-aDd practically ended
there. The range Of fluctuations larger than has
been seen OF late and trading expanding
volume. II variety IS an attraction To spectators
tho market presented drawing characteristics Never
theess IL preserved tho features that have
marked It ngh the past few weeks. namely. mo
touacy Of holders, the scarcity Of certificates for sac
and the with which Expressions we're recJN crci
from The refined market simply 'uled firm and -
awaiting the arrival OF vessels to enter iacio'
In tho speculative field The activity al the wells
developed dscOura slng feature but is still used a.
the chief reliance OF the bear party. The long oil
sold last week probably reached stronger hands uan
those which previously held IL and the short interest
lltilc expanded by the net result Of the nucua-
tons. The market closed with numerous dlsDeleVes
In the basis OF h CHER prices and with many orders 10
" buy the reaction untitled but II recorded gam
from week ago OF nearly 4 cents and there was no
reason to discrcdit its strength.
The range Of prices and the total dealings IN Va.
t!onal Transit certificates az the Consolidated stock
and Petroleum Exchange for the last three weeks wee
as follows:
"A Arv I.