The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-04-18
Price of the May Option TumbIes, to
the Amnzement of Spectators,
from $2.67 to $2.12 a Barrel.
ONLY GAMBLERS AFFECTED
STANDARD is PAYING $3.50 For ALL
THE ACTUAL OIL OFFERED.
sa.-O the Highest Price Yesterday
at Those Figures-Predictions.

PITTSBURG, April 17.-Speculators in oil
Who predicted a rise to $4 a barrel before
the end of the present week and who were
rash enough to back their predictions with
money, saw their hopes tumble and their
visions of wealth dissipate this afternoon.
There was slump in the market and it
came with a suddenness that took away
the breath OF the bulls. This morning the
price of the May option reached $2.70. At
2:30 p. m. it stood at $2.62. Ten minutes
later the price had dropped to $2.37. and be-
fore the astonished brokers could recover
their mind 2.10 was announced. Then there
came a slight rally and the market closed
at $2.161a.
There was not a sale on the PittSburg
Exchange during the first half hour this
morning while the sales on the Oil City
Exchange, during the same period, aggre-
gated only seven thousand barrels. The
Standard again put up its price 25 cents, to
$3.50, and the May option was offered here
at the opening for $2.70. Cash oil was Of
fered at $2.66. There were no buyers and
the price gradually dropped for May op-
tions to $685. then to $2.67, and at 1880,
$2.65 was bid The market was much quieter
up until noon than it was yesterday and
the range of fiuctuation was narrower.
The highest point reached was s2.7O and at
oil at s2.5S1k bid. The feature of the oil
market this morning was the announce
ment that the Atlantic Refining Company
had raised the price of the refined article
another cent a gallon. The total advance in
the price of refined oil in the past two
weeks is cents per gallon, or 81 per barrel.
The break in the crude market came at
2:3O this afternoon and it descended on the
exchange here like a thunderstorm. The
market had been lowering about SIC with
light trading, and from the fact that the
price of refined oil haG received another
lift, no big break was expected. In fact,
it was believed that oil would close higher.
But at 2:30 the slump began and inside of
ten minutes it had gone from $2.62 to S2.37.
The brokers stood about daZed by the sud-
denness of the blow and each cash quota
ton from the Oil City Exchange brought
a lower figure, until $2.10 was reached.
This was within a few minutes of closing
time and it rallied six and half points.
The excitement was more intense than at
any time since the present bull movement
began. The break was ts.*sced, buts not ex-
pected at this time. Operators scarcely
know what to make of the situation, though
many predict that the slump is only tenn
porary, and that the market will recover
tomorrow.
FALL OF IS CENTS
The lowest sales were made at s215, and
the lowest point touched was $210. The
closing figure was $2:1619. Although the
market fell So cents during the day, it is
estimated that but few people lost, as most
of the oil held here was bought at figures
below 81. Beside this. nearly all the bro
kers have refused to handle margins for
less than 81 a barrel. The market fell from
$249 to s2.15 in twenty minutes. Brokers
in fto c1r w fha hat
speculators in Oil City became panic
stricken and all tried to sell out at once.
The alarm was increased by the fact that
the Standard agents refused to buy certifi-
Gates from curbstone brokers at the fixed
price of 81 so per barrel, though they never
stopped taking oil from regular producers
at that figure That is what put the spec
ulative price below that of the Standard
for cash oil. Although the market is only
credited with a fall of IS cents to-day, the
difference between the top and lowest quo
tations was 60 cents.
In spite of the panic here not over 10000
barrels were sold all day. Most of this
was by Monday and Tuesday purchasers.
who realized a profit. A Standard official
to-day said the scarcity OF oil was not
sufficient to justify prices above ~, and
boom. The Standard advanced the price of
refined to-day l cent. This makes an ad-
j. NJ Gufrey predicted that the market
tomorrow would recover all that it had
lost, saying it had fallen because a lot of
people had got scared. 1t is believed here
that if the Standard retains its present
price of $3.50 tomorrow oil will go to SS
by 4 o'clock, and should the Standard re-
duce the price for cash oil to 81 the specu-
lative price will range between s2.a6 and
81. 40. Two men holding 5000 barrels OF Oil
announced on the Exchange during the
panic that they were going 10 hold IL until
it was worth S. barrel.
There will be more money lost in the oil
business this year than for long time
fdent of one of the local pipe lines He
said that he did not refer to the result OF
the transactions the exchanges. but 20
the operations in the field Leases bonuses
ROYALTIES materials and labor are all being
based the advance In the price OF crude
The number Of field operations last year
was IL 500 the largest total since 1890. Not
wthstanding this large increase the pro-
Guction of new wells was comparatively
small Approximateiy, $1,000 saaoooooo was put
ceived from the various regions the number
of operations and the expenditure involved
will greatly exceed the total Tor last year
ket price of the commodity will certainly
decline, while the cost of obtaining it will
ures If oil is not struck in large quantities
the loss will be equally great. In any
event, millions will be sunk in dry holes.
The Standard, through It's purchasing
agents, has secured possession of several
more slices of oil-produeing territory. The
Southwest Pennsylvania Oil Company.
Standard concern has bought the remain
ing three-fourths interest in the Manning
ton and Fairview CIV. Va.) territory, con-
tanning about eight fhousagna "a, acres r and 800
day. The Standard has also purchased a
three-fifths interest in the Carter OIL Com
tse Of the pFs9 cartar in
company owned about one hundred wells
with a daily production Of LOCO barrels.