The Cordova daily times., 1921-07-25
LESS DEMAND LOWERS PRICE
 OIL PRODUCTS
,ny International News service)


 shat prices paid for Pennsylvania crude and other grades produced in the east are way down, are them. selves placed in a position where they are operating on a basis that affords a very narrow margin between prof 1t and loss and are so loaded up the refined prorducts for which there is no market that the conditions of less than six months ago, when the independents were constantly bidding up the price of crude until the Pen nsylvania grade reached the top fig. ure $6.10, are today taking as little as possible. With Pennsylvania crude oil down to $2.5O barrel-the lowest price in over five years-it Is again having demonstrated that it Is not price but demand that sells any produce. And that demand. excepting in the case of gasoline is conspicuous by it's absence.
 A well-known local refiner and job ber of crude and refined oils today pointed to the fact that refiners who but six months ago were bidding against each other in efforts to secure to the limit with refined products and going into a market where keen com petition for prospective buyers has been forcing the prices down to dis pose of stocks that have taxed stor- age facilities to the limit, in order to avoid being put in a position where they would have to stop buying crude and shut down
 Every price cut by jobber or re finer" stated the local man. makes | the situation more acute X refiner may make a special price in order to move some given line with which he is overloaded. This is pie for the buyer. | who. regardless of the conditions that have forced the seller to make the nov | low prices immediately stands pat on that price with all corners. and thus the lack of demand has been slowly | but surely forcing down vamc5 for finished products.
 As a mater of fact" continued the 1 local oil man. the present cut in the price of crude had already been large lv discounted by cuts in the price of the finished product the past few days"
 WESTERN COMPETITION HURTS
 Although there are several refirers who are continuing to operate their plants. 1t was pointed out. the opera. tions are not netting Gnv profits, and some who do not want to sever con. nections with their socrces of srrply in anticipation of a revival of business are actully doing business at a loss
 The producer is the man who right now is getting the wors: of it-espe cially those who bought production or drilled in new production the past two or three years.
 The refiner, stated the Information. al News Services informant, except ing under extraordinary conditions. usually buys and sells at the market. The producer who drilled at the peak of the market prices and correspond ingly high costs is faced, even if he is able to carry his load, with the pos. sibility of having to wait a good many years before he can begin showing a profit on his wells.
 As to where prices will eventually go, nobody seems to predict or guess There is naturally the pessimism that comes with cut, and some profess to see further drops in sight Others, more optimistic, believe that even if there should be further cuts they will not be for any length of time, as the curtailment of operations and produc- hons and the prospective revival of business are expected to cause a turn.
 So far as the better grades of crude oil are concerned there has been no increase in the supply available, ex- cepting in stocks on hand. Western crudes have been brought into the market in increased production, and gasoline from these grades, although not to be compared with the high grades refined from Pennsylvania oils, are laid down at Eastern points at price that makes them formidable | competitors with the Eastern grades. |
 Aside from the demand for gasoline there is but a limited sale for lubri. |