Sistersville daily oil review. [volume] (Sistersville, W. Va.) 1902-1905, 1903-12-18
Demand For
Certificate Oil

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cor ditiCns relating TO the N as com
Jared with those of former years
ard the possibility OF further new
rules of new interpretations of old
ones, some revival of activity could
be logically expected In tue con-
version OF credit balance oil into
certificate oil and In dealings
In these cert 6ca'es. This pre-
dictiou Is being verified and It
would b. having much stronger
veri6cation If the Standard had not
recently shut out the principal re-
eions producing oil of the Penn
>ylvania grade from the privilege of
this conversion of oil into certif
Gates. During the past month the
certificate oil brought at the OH
City Exchange has amounted to
about 10000 barrels, all of 1t bring
Ing higher prices than credit bal
ance oil. As most of the readers of
The Petroleum Gazette, are aware,
1t was formally the case that when
producer had 1000 barrels of oil
of the Pennsylvania grade In the
Standard lines whether In Penn
sylvania, New York, West
Virginia of Southeastern Ohio, he
could obtain a certificate for 1t
The business of the oil exchanges
was based then on these certificates
and the price paid for oil by the
Standard purchasing agencies was
the same as prevailed In the ex-
changes. When In January, 1895,
the Standard announced through
Its purchasing agency that 1t would
no longer be governed by the ex-
change prices In Its purchases of
crude there appeared no incentive
left for producers to convert their
oil into certificates, and the day the
ruling went into effect the markets
for Doth certificates and credit bal
ances closed at the same prices,
90 1 SC barrel. Yet within three
months these same certificates were
bringing $3.50 a barrel and the
Standard was buying them at that
price In preference to dealing oh.r
wise with the possibility of being
called upon to deliver to other pur
chasers the oil represented by the
certificates. The Pennsylvania
stocks were getting low and the
Standard evidently had no oil to
spare Since then with the
exception of minor furries,
the certificate market has re-
NAMED In a dormant state. The
Standard was given much credit In
connection with the boom already
noted for giving the holders of Ger
tifcates the opportunity to sell
them at so much of an advance In
prices, but 1t does not seem at all
eager to duplicate that experience.
The prese Mt conditions as to stocks
are much the same as preceded the
rise to 81. 90 oil, but instead of en-
braciug all the regions producing
oil of the Pennsylvania grade 1t ap
pears that all the territory from
which oil may be converted i:to
certificates Is now limited by the
Standard practically to the portion
of the Pennsylvania field called the
Lower District. Even with this
limitation certificate oil IS becoming
quite factor. For the 40, coo bar
rels picked up In small lots during
the past month the highest price
was quoted the grid Inst, when $1.95
a barrel or seven cents more than
the credit balance price was paid
for 5000 barrels. On the same date
s. barrel was bid for 10000 bar
Iels Further interesting develop
meuts In this line are probable. The
lack OF certificates for oil outside
the territory specified may make 1t
less convie for purchasers to deal
In oil which producers have In the
Standards tanks and lines In those
regions. Such oil does not belong
TO the Standard. 1t belongs to the
producers who are keeping 1t there,
paying storage charges on 1t aud
conforming to the other regulations
the Standard imposes for t0king 1t
into It's custody. If producer has
oil In the lines, whether 1t be 1000
barrels or more or less, 1t Is strain
ing presumption to conclude that
he has not as much right to sell 1t
In the form of q credit balance as
certificate, or that the pipe line, at
Its governing pipeage rates, should
not deliver tn oil In the one form