Sistersville daily oil review. [volume] (Sistersville, W. Va.) 1902-1905, 1903-11-18
Remarkable Conditions

companies which are not represent
ed by credit balances of producers,
and which the lines therefore have
no right to sell or use themselves
until the producers have released
the oil by selling the credit balan-
ces? The past month has furnished
developments relating Interestingly
to the question. During the latter
part of the month those redners
who have been buying crude from
the Standard lines received notit'
cation that because of the drainage
upon the stocks and the extent to
which the producers were holding
their oil, the lines would be obliged
to reduce by so percent the quanti-
ty of oil the refners had been per
mitted to buy from them. This
was something unprecedented In the
history of the business and consti-
tuted, of course, a rough jolt for
the re6ners affected. 1t Is not pre-.
presumed that the Standard
feels especially grieved or re-
gretful because of the loss OF
business, temporary or otherwise,
which this action represents to the
refners concerned; nevertheless
there seems to be no disposition on
the part of oil men generally or OF
the refuers themselves to doubt
that the Standard Is admitting
fact unpleasant to itself as we'll as
to others In saying Its stock of
higher grade oils Is low. Conced'
Ing that the stocks are low the re-
fners In question do not feel that
point In the drainage has been
reached which justi6es such cut
In crude supplies to patrons OF the
lines as the so per cent. reduction
to which they have been subjected.
Committees representing them
have had conferences with the
Standard people accordingly to
bring about modification of the
action. The first of these meetings
held a couple of weeks ago bore no
fruit, but second one, held at OIL
City last week is said to have given
promise of better results, through
accomplishing nothing definite.
With the oil represented by GER
tificates and with the quotations In
the exchanges governing the Stan
dard prices for crude, as used to be
the case, the present conditions
would repr esent corner In oil and
there unquestio pably would be
great boom In crude prices. AS to
any advantage which may be taken
of the present situation by the out
side purchase of credit balance oil
or by speculative dealing In credit
balar ces the Standard Is making no
public announcements as to wheth
er 1t feels fully entrenched behind
rules present and prospective, but
1t may be said to be exhibiting
symptoms which would pass fo1
nervousness In other quarters. 1t
Is a very interesting situation.
With reference TO the refiners
whose supplies have been reduced
1t Is logical inference that the
Standard will strain a point to let
them have crude rather than to
force them into the organization of
new factors of competition as re-
presented In independent pipe lines
and producing companies, either
directly or In alliance with pro-
ducers. For the past year or more
the great increase In the demands
for higher grade oils has
rendered the competition In
relation to them a competition
more for the oils than for markets
for them. The Standard Itself has
not been able to keep up with the
demands of Its markets and has
bought large quantities OF rehped
products from outside sources. The
dematd for the higher grade oilSts
greater than the supply. Manifest
" 1t Is not business for the Stand
ard to pursue unnecessarily policy
which will drive the re6ners con-
cerned into organizations and al
liances at various points which will
affect the Standards crude supply
and trade more seriously than If 1t
had continued to sell crude to them
according to Its usual custom. The
refners affected by the reduction
represent an amount of brains, en-
ergy and capital not to be nullihed
by the cutting off of part of their
present crude supply all OF It,
for that matter. For this reasons
ana others 1t Is repeated as credi-
table to believe that the Standards