New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-01-07
THE PETROLEUM MARKET


Tha New Year IN the petroleum world opens WITH
duh and discouraging speculation. with SLOW oe
mand for refined oil, but with stusuon 'n a'o P'
ducing fields that presents no promise OF i"iso ~
cession to the new supply OF Ponnsyivana OIL
thcrc is any serious menace OF er-prcducton III y
part Of the petroleum country II carefully hid ana ~
ought to be safe to conclude that tho prospecting no"
s,np done will result in dsappontments 10 inc
drillers than profits to those who operate on the ex
notation of heavy increase In output inc a'ciaso
daily new production December Is reported py the
on CITY Derrick at 3,e74 barrels from 3ol Wells
against 1910 barrels from BOT wells compe'oo ia
November 1888, while IN March, 1888, the new pro.
ducton rose to 3701 barrels from only 90 wells, ana
in December year ago the new production was i'ooi
barrels from 90 wells Tho average yield per new
we'll I'm December 1887 1.-THE second month OF the shut
in year, was IL $40 barrels in March, leee, IL was
GO barrels: IN November, 1888, It was IL 30 ana IN
December 1885, the average per well was 10 Ia par
rels These figures certainly Indicate tho psuoiy Oh
. now supply, but the activity OF new "oik IN the
way of developing territory would imply that the
ruling values were satisfactory to investors IN OH
property. The total work last month amounted
TO $50 composed by 337 wells drilling ana 100 rigs
I'D and buildIng against $40 wells, BET rigs, 2loJ
In November. 1888. and 122 wells "a rigs 90 Ia
December 1887. The success OF the SHUTDOWN u
certainly reflected in this lively use OF tho dri toven
IL results have often been disappointing, and 10 Is
recorded I'm an average price Of crude oil m 1888 OF
about SO cents. against 60 cents In the previous
year. rs cents In 1886 and ss1-s cents in 1886.
The primo argument OF the bears on oil probably
rests upon the fear that Lima oil viii be uuizcd
against tho Pennsylvania product 70 quote nom
recent circular issued by Watson a Gibson There
"a no doubt that this fear is an active element In
restricting speculative ventures IN National Transit
certificates but the investor appreciates The net tnat
immense efforts beng made TO introduce Ohio Oh
as fue-eforts strong enough to arouse tho opposition
Vt insurance men at the West When to this is
added the fact that 25 cents premium Is stu paid by
the Standard on white sand Pennsylvania oil. The fear
of Ohio competition becomes to some observers
spectrs with as much substance electrically refined
sugar possesses In the eyes OF the ieauns
members of the sugar trade. The use OF the
Ohio oil argument is hlled, when In the same
breath IT. is argued that the Standard pays say 20
cents moro for fresh oil from the whito-sand pools
than for oil in the exchanges tsnn gets oet'er
value and at the same time encourages new develop
mcnt work without advancing the price OF the cntre
stock on top OF ground.' One suggestion madc ny
the firm referred may DO credited as representing IN
large the pubo'E excuse for staying OUT OF
the crude speculation: The Producers Assooiauoh
have large part of their call at 90 cents yet unsoid
and since they must pay the acc umusted storage
which been running for year or more, they arc
anxious to sell out soon. while little proht remains
the Standard meanwhile not being disposed TO take
oil their hands, and the pubic being even moro gener
ally posed buy into market supposed 10 be
under Standard control Much OF the talk and
argument that usually find circulation when situa
ton presents the psradoxes that the oil situation now
Connected from s course Of legitimate movements
but they OF times worthy OF record as modiil
cation of commercial conditions.
The element OF Russian competition, which for a
long time used as reason for tho low prices OK
American crude much force when the country Is
able to extract larger value for its exports In 1883
than that Of 1897 although In the latter year TIC vone
Ohio product cifcunlS aftia
support OF the confession OF the Standard interest OF
R sS bssy s SS crude s1 no% IA
possession of their allied Buckeye pipe line The
81 oo5 barrels or only about 1000 barrels day below
the average daily production. The average daily
Of is e Ssas DAILY
has been falling on in S PpSas IN sss
100000 to 100000 barres-s reduction smaller than
last month the total runs are seen to be 4stSs
barrels Or an average Of 1906 barrels 81, day the
ssynS s dSses
aggregated 5so75s barrels daily average of
''' The initial month Of 1889 presents sn further
average Of s s s sF soad
seG but Of seems S probable Il ss thu
deliveries win not expand later IN the month. Here
the prc line figures for three days In January,
-four days for the charters
Runs peliy's Ds Del Us Cha ir y:
Ay per day :. ...---. 42.767 G5722 1906 $4,000
Last weeks crude certificate market was dull and
irregular, with a slight settling down In values below
the basis Of tho previous week. The opening was
stronger in tone and prices rose from s7 35 cents TO
az So cents after the New Years holiday. But on
narrow volume Of trading thero followed saggiDg
movement to s5 1896 12 cents. In spite Of strong
the producer and the public alike decline TO under
take important ventures The buying OF the rc1ner
confined to the strictly current supply and yet there
Carrying rates are high but the common opinion In
the trade Is that they are manipulated. and do not
reflect an excessive long interest. IN fact n is din
cult to discover signs Of any largo holding OF long oil
except that the producers call, about which the
public are still left in the dark. On speculative
chances some members OF the trade looking for an
early rally but the market closed heavy in tone at
almost bottom figures.
Tho range Of prices and the total dealings in Ma
0nal Transit certificates at the Consolidated Stock
and Petroleum Exchange for the last three weeks
were as follows: