The morning news. [volume] (Savannah, Ga.) 1887-1900, 1890-01-12
THE PETROLEUM PUZZLE.
Why Pennsylvania Oil Stands at $1.o3
q Barrel.

a Barrel
CCopyright.)
New YORK, Jan. 11.-"Petroleum prices
are mysteriously dull and uninteresting
at 81 03 per barrel. Why, they ought to
show a rapid advance with the hveliest
kind of trading"
That is what young broker on the con-
solidated exchange said to me.
/ asked him why.
In substance, the reasons as given are
that oil is too cheap at practically 81
barrel when production has declined nearly
one-5hird in the Pennsylvania regio
within few years, and stocks from $780,
600 barrels to about one-third of that guam
tity within a similar period.
''Well, what are you brokers afraid off,"
l asked. 'Why don't you all hang over the
bull-ring and buy oil on the strength of its
statistical positionW
The elegantly kept young Spectator
looked at me pityingly and seemed inclined
to let the subject drop, but he finally thought
better of it, and asked whether 1 was one
of that small and poorly informed number
of people who supp )se that prices at the
exchange are made daily after careful
study of the statistics of the products
traded i'll.
mo, not exactly" | replied, "but there is
good reaso for petroleums apparent
ignoring the law Of supply and demand, SO
far as price is concerned
Jpn tell you what it is" he added "If
we, that is, the broker and our outside
client, bull oil, the Standard is likely TO
bear il, and there we are; if we sell it short
| the Standard turns up as holding all tae
available certificates, and there we are
again. So we, having been to school, are
wise in our day and generation, and let oil
| alone"
But, as you say, oil has got to advance,
| sooner or later, presumably sooner with
stock disappearing at the rate of 5000, 600
barrels year, which amounts to, let me
see-about 666,00O barrels a mo lth, % 900
barrels a day. 925 barrels an hour, or about
1915 barrels a minute"
'Ah, replied the young Spectator, shut
you forget the Ohio oil stocks. They are
large, and rumor has it that the STANDARD,
which practically owns the entire Ohio
field and product, has been blending its
Pennsylvania product in tanks with the
heavier . lio oil by means of its new pipe
lines connecting the Pennsylvania and OHIO
fields"
Evidently the statistical position of
petroleum is a puzzle TO some people in the
trade as well as those out of it.
MIR. George r. Gibson is an older expert
on petroleum statistics, and discoursel at
length when | called on him for some facts
regarding Ohio field oil.
81 do not know, of course, whether the
Standard company mix their Ohio crude
with stocks of Pennsylvania petroleum
but such charges have been made The
Ohio product has been pr lduced in rapidly
increasing quantities of late. and the popu-
lar supposition is that its quality will not
permit it to compete with tae Psunsyl-
mr. 1l1O re Obi Nd
far proving too refractory for known refin-
ing processes, so it has been m ainly used for
fuel"
who has charged the blending of Ohio
and Pennsylvania oils?'
Various English journals, which have
complained Of the deIeriorating quality of
OF reaching them from the United States
of late"
$40 what do you attribute the indiffer-
ence of crude petroleum prices to the appar-
emit statistical positionr
ut may be aScribei, perhaps, to wide
spread fear of the ability of standard r.
tinerS or refneries to produce from Ohio oil
product equal TO Pennsylvania refined.
which, of course, would adj the whole Ohio
field and stocks to what Pennsylvania has
to Offer, and materially alter what is called
the stat stical position. Then, Of course,
few outsiders care to attempt a speculative
movement In petroleum uuleSs they think
they know what the Standard Oil Com
pany's views are as to the price.
What is the price of Ohio oilE'
ut is quoted at about - and 90
cents per barrel, or one-seyenth the price
of PeAnsylva ia crude"
do you know any one near at hand who
could reply definitely aud positively to the
charge of mixing Omo with PENNSYLVANIA
oilF
Mr. Gibson was guilty of just suspicion
of a smile W Ell he replied 'Oh, yes: if
you will call on Mr. Rock Teller, president
of the Standard Oil Compa ", across tue
street, have II doubt he could reply def
nitely on that poilt--if he would
So went across the street and called on
Mr.. Rockefeller in due and regular form
by The aid of "Rnttnns1 and a mad Of r,nnnr