The herald., 1896-04-07
OIL TAKES ANOTHER JUMP
TINS TIME THE RAISE IS ONLY FIVE
CENTS PER BARREL
The Enoch Talbot to Take Another Lsrge
Shipment North-Why Some OIL Is Sold
Below the Market Rate-Looking for New
Consumers In the South

At the meeting of the directors of the oil
exchange yesterday afternoon the price of
petroleum was jumped another notch, from
80 cents to So cents per barrel, f. o. b.
News was received by them that negotia-
tons were about completed for another
cargo for shipment north by the Enoch
Talbot, which vessel is expected to arrive
at Santa Monica any day. On her next
trip the Talbot will take away a full 5000
barrels, which will do muct to reduce the
surplus oil now on hand and give firm
tone to the market All the exchange stor-
age tanks are full and members are pump
ing into their own watts AT the wells. These
are not quite one-third full, on an average.
so that there is plenty of storage room for
all oil produced until the Talbot shall have
had time to get here and load.
1t was reported yesterday that offers of
20 cents per barrel at the wells had been
refused for small quantities, and one agent
who wanted 1000 barrels for San Fran
cisco parties was Offering 20 cents in vain.
He could find no one who had that amount
OF oil on hand who would accept the fig
ure. The individual producers and others
to cut any great figure for the next few
weeks. They have been cutting just far
enough below the exchange rates to make
great many sales, but now nearly all the
oil they held has been disposed of. Conse-
quently. they can fill no large orders, and
will have only few hundred barrels, occa-
sionally. to dispose of to local consumers,
who are seeking for oil below the market
rate. .Chis class of men are a thorn in
the side of many exchange members.
They are always ready to extol the ex-
change and its methods and assert their
intention to abide strictly by the quoted
rate, but no sooner do their tanks fill up
than they are compelled to sell at what
ever they can get. Many of them have
not sufficient capital to hold their product
even should they wish to, consequently
must let go.
There are still few old-time, low priced
contracts which have not expired, and yes
terday 100 barrels were transferred to
fill an order on Ascent contract made
several months ago. Sixty cents per bar
rel, delivered at their tanks, was yesterday
offered by the Standard Oil company. Mr..
Harvey reports sales as slow, some ship
ments being made to San Francisco. how
3 cents, making the total cost laid down
there Sill. This hardly leaves fair
margin of profit at present prices as
quoted there. The Standard tanks are fill
ing but slowly. very little oil being offered.
In Mr.. Harvey's opinion the market is
very uncertain. but he hopes the upward
tendency may be maintained.
In the field good production, consider
ing all things. IS reported. Many wells have
lately been deepened and some new ones
sunk which are running we'll and the
amount produced per diem is said to be
as much as month ago. How long this
state of affairs will continue is conjecture.
The wells now being sunk on First street,
some 1000 feet west of the heretofore.es-
tablished limits of the district, are not
turning out we'll so far, no body of oil hav-
ing been yet encountered. Spudding is
going on and one or two new rigs are going
up.
w. H. Tonkin, one of the members of
the oil exchange. will go south to San
Diego this morning in connection with a
big order which the exchange hopes to
place in that vicinity. Ed North is already
in the bay city and urou their return it is
hoped that another large consumer will
have been added to the list of fuel consum-
ers.