The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1921-09-11
OKLAHOMA oil
prices Affect
!. KENTUCKY RATE
Increase Paid for Somerset
Grade EquaIizes Difference
In Mid Continent Field.
BY SAMUEL NJ. R0SENTHAL.
International News Service.

OIL CITY. Pa, Sept 11.--Equali-
Eation of the difference In the cost
Of the Somerset Qkentuclxy) grades
OF crude oil and that from the mid
continent field. according TO inter-
ests close to the Standard OIL Com
pany. are largely responsible for the
increase In the price paid for SOM
erset. which, after a period OF nearly
two months Of unchanged crude
prices. have. been Increased to slio
grades. =.
4 This increase in price still makes
bit possible. It Is explained. for 6omer-
set light and heavy to compete
with the lower priced mid-continent
grades at seaboard. when transpor-
tation charges are taken into con-
sideration.
AZ the same time It Is admitted
that production Of the Somerset
grades has not been holding up. and
they are not quite 50 easy to obtain.
In the Pennsyivania crude fields
the increase in price Is viewed with
considerable interest. and opinions
are conflicting.
While 1t Is generally admitted that
the increase in the price of Somerset
should have a establishing and
STRENGTHENING effect upon crude mar
kets generally, independent refiners
believe that the continued scarcity, OF
an outlet for anything but gasoline
precludes the probability Of an In
crease in the Pennsylvania grade In
the near future. ...a-.
Because there 10 little moving In
the line Of refined products excepting
gasoline. and that under such condi-
tons that Oklahoma crude At $1.25
IA barrel less than Pennsylvania at
fords nearly as much gasoline, one
refiner believes that It h not likely
that an increase In price will come.
| Looking at the situation from the
producers side. there II ample ground
for encouragement.
For some time past Independent
buyers and producers Of crude have
been paying q premium Of 10 cents
barrel above the market. IL Ii
understood that no great amounts OF
oil have changed hands at this figure.
Every producer who can carry his
Oil 10 storing 1t, and many who are
selling part with only enough to Take
care of current. expenses. At the
same time some encouragement Is
taken from the report that. even
though II IL slight. thert has been a
decrease in stocks In TIE oklahoma
field. 3D.. ..,. - 9.
Summarizing conditions from In.
formation received through various
sources. II seems as II the future is
entirely speculative
The increase in Somerset prices
might stimulate buying IN speculative
circles interested In the Pennsylvania
grade. and however plentiful lower
priced grades may be. such move
ment would Inevitably result In q
higher figure. .-..-. -.
Amy marked tendency toward an In.
dustrial resumption more general than
b now evident. and q resultant in
crease In the demand for lubricating
and fuel oils would have marked ef-
feet upon the market. also as It 10 in
this line that .refiners are heavily
stocked.
Once products other than gasoline
find q ready demand crude prices are
bound TO Increase.
Refiners. although more active than
they have been. are sim operating on
a basis OF rigid economy. with the
fewest possible number Of men, and
the competition for outlets for their
products is the keeneet that has been
experienced In the past seven years.