The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1922-07-19
OIL REFINERS IN
CUT FOLLOWING
STANDARD DROP
United Financial Forecast Con-
firmed by Lower Gaso-
line Prices.
BIG DEVELOPMENT IN CRUDE
Future Production Depends on
Affect of Changed State
of Market,
BD ". II. CRIME 81.

United financial stan CorTeSoondent.
NEW YORK, July 1a.-Other re-
iners today were following, or were
expected to follow shortly, the action
Of Standard Oil of Indiana in cutting
gasoline prices 2 cents a}gallon and re-
fined oil prices 1 cent.
Sinclair already has met the Stand.
ard cut and a similar announcement
by other refiners is only a question of
a few hours Standard Oil of Louisi-
ana cut gasoline in Arkansas l cent a
gallon.
The cut in gasoline prices was pre-
diCted by the United Financial Service
last Monday. when announcement of
crude oil cuts of rs DENTS barrel fol-
lowed each other swiftly. While lead
ing oil men deprecated the talk of a
cut in gasoline, they we're forced to 1t
by the physical fact Of a large over
production of crude, which forced an
other cut of 25 cents in crude after the
original cut was announced.
Refners Follow Drop
While refners are following the
gasoline drop, crude oil producers,
who have not already acted, are an
nouncing further drops in the price OF
their product.
The cut in the price Of gasoline is
the development in the crude oil sit
uation, which affects the consumer
most directly and Is therefore most
interesting to him. Whether it is the
most significant development is doubt
g. - T.1v,
cial Agency today carries a short item
from Youngstown to the effect that
the independent steel companies
throughout the Mahoning Valley are
substituting oil for coal as a fuel
wherever this is possible.
Since coal striking became almost
an annual epidemic, manufacturers of
various lines and railroads IN the oil
producing regions have turned to oil
for fuel. Both coal operators and min.
ers can read that fact and take note
that each strike is lessening their
market.
Any considerable turning to OIL by
steel companies would, Of course. soon
cut into the record crude surplus and
offer a way for the producer to dis
pose of his product. 1t would halt
any further drop in gasoline. How
ever. such a development is matter
OF months and not days.
Depends on Production
The immediate future OF crude oil
prices will depend on production. II
the so cents a barrel reduction does
not result in a cutting down of pro
duction. another cut Of rs cents a
barrel is likely.
From Wyoming today came word
that all grades of Wyoming crude oil
had been reduced IS cents a barrel.
From Shreveport came the news that
Standard Of Louisiana had taken sim
liar action with respect to North Lou
isiana and Arkansas crude, and that
Gulf Refining had followed suit.
Although the reduction was antici-
pated, top price for HaynesviIle crude
oil under the new schedule is $3.50
and for Caddo Homer, FL Dorado and
De Soto crude $1.75.
Pine Island heavy oil Is cut to 81
a barrel and Bellevue to 75c. Stand
ard Oil and Louisiana Oil Reflning
are the only buyers running Bellevue
Oil, though the National Oh Company
is one of the largest producers and
shippers from that field handling its
own production.
The cut is the first change in the
local crude prices since April 20 and
IS expected to be followed by another
of the same amount in the next week
or ten days.
Pennsylvania Crude and all other
eastern grades have been reduced rs
cents, except Corning, which remains
at $3.50.
Further signs Of exhaustion of the
Toteco Azul fields in Mexico are con-
tained in dispatches from Tampico,
so that territory probably will add