Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-06-25
A WHIRL IN OIL.
Big Jump and Day of Unparalleled
Excitement.

A Big Jump and a Day of Unparalleled
Excitement.
The Petroleum Exchange yesterday adopted
the plan of trading IN futures by vote of AZ to
Il When this became known on the floor it
caused scene that has had no parallel since 1876
The market had been dragging along around
$3.50 and SAC. butthe announcement of the vote
acted like an lthuriel spur, and famed itinto
blaze of excitement which almost took the
breath away The whirl was of short duration,
but it was intense while it lasted. A fluctua-
ton of Is cents in about Is minutes was some
thing the 'boys" were not prepared for, and
when it came It made their heads swim:
The market opened listlessly at 835ac, where
it dallied with nothing special doing until the
announcement of the vote, about 11:30, when it
commenced leisurely to advance, reaching S5c.
The shorts then, scenting danger in the air,
made rush to cover which sent the price up
to 90c. The scene at this moment was most ex-
citing, and the voices of the traders were blent
in such a volume of confused sound that it was
impossible to distinguish one from another, or
to tell with even an approximate degree OF
correctness what was going on twas wild
scramble on both sides to take the tide at its
food. But the climax was to come.
At 80 the market showed staying qualities
which surprised those who expected an imme-
diate break. This added fuel to the excitement.
and when, quicker than it takes to tell it, the
market leaped, almost at bound. to 1914, con-
fusion became worse confounded and the vol
ume of sound increased to roar. Everybody
was gesticulating. shouting, frantic. 1t was a
sort of lite and death struggle between the op-
posing elements represented on the floor. This
was the eliminating point of the drama, which
severely taxed the mental and physical resources
of everyone engaged in it. More than one
broker emerged from the ordeal with an aching
head.
Soon after reaching this point the market be-
gan to weaken, going off fraction at a time
until until it reached S9c. where it halted mo-
%o ifch hroo Grr, ,od in
the last few minutes and closed feverish and
unsettled at 90c, with everybody at sea as to
what to expect to-day. Upon this point one Of
the oldest brokers on the floor said: II look for
the market to fiuotuate between IS cents and 81
until July ], or thereabouts. 1t will be infu-
enced by new conditions at that time, the effect
of which will not venture to guess. One thing
is certain; trading in futures which Is now set
tied. on the limited supply of certificates, must
put and keep oil above the level of recent
months Under the new plan the demand will
always be greater than the supply; even after
counting in the wind"
Trading was on large scale, but the excite
ment was so great that it was impossible to
get at the amount Business at the other ex-
changes was unattended by anything Of a
specially unusually nature During the day
quotations at OH City were several times or
6cents below those here. 1t was bad time for
the shorts but whether or not any of them were
badly squeezed will not be known until the
clearance sheets are handed in to-day. AS
there were no rumors OF lay-downs, the pre-
SuHpLlOu Is budL diL Cdlu0 Oub VI tu6 Ddttle Will
whole skins.
The cause of the furry, stated in few words,
was the adoption of the plan for trading in
futures on working stock of about L, 100000
barrels-an amount below the requirements of
the present system, and far short of what will
be necessary under the new deal. The natural
effect of this inevitable shortage was to boom
prices. 1t is expected that the new plan will
go into effect about July L
A New York telegram gives additional reas
ons for the furry as follows: There was sud-
den change in the trading in the petroleum
market to-day. and instead Of the dullness re-
Gently prevailing there, was heavy trading,
wide fluctuations and intense excitement, all
incident to an advance of 1116c and reaction
of sc, making the day the most active for eigh-
teen months The advance was based on an
advance of 20 points in the price of refined oil
and on a report that the producers had exer-
cised their option, which would expire on July
l. and had delivered the Standard Oil Com
pany 8500, 900 barrels at &c.
The opening was firm at SS5Sc and the price
advanced slowly in the first two hours, reach
ing 84sssc at noon. Then the news of an ad-
vance in the prices of refined from 69@Tc,
caused scare among the shorts and when they
tried to cover they found no oil tor sale Buy
ing by Standard Oil brokers and Western op-
orators rapidly ran the price up, and In less
than half an hour it reached Csc. A sharp re-
action then set in, and the price fell to 8Sc but
producers continued, and the market closed
steady 901<c. Consolidated Exchange:-Open-
ing S31sc. highest, Csc; lowest S35Sc: closing at
exc. Stock MISUNDERSTANDING, S54c; high
est, 95c; lowest, S3s4c; closing at S9Ac. sales,
472 600 barrels,