Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-01
CRUDE OIL PRICES
| ARE AGAIN SHADED
Quotations in East Texas
Market Range From rs to
81 CeRts Barrel.
Special Dispatch 70 The 1tar.

Special Dispatch 70 The Gtar.
TULSA, June IA leveling on Of
prices for crude oil in the East Texas
market has followed the reductions Of
30 cents Q barrel IN the quotations Of
the Humble OIL q Refining Co. Viz
tually all major purchasers have posted
the new schedule of prices which range
from rs to 81 cents q barrel, depending
on the grade. The new prices are ap-
parently more in line with conditions
In the territory.
Ever since the discovery of the field,
the crude oil market In the new terri
totry has been very unstable. The
pcsttngs by major companies which
even on these days Of price cutting
supply an index to the weighted average
price had lost their significance there.
While the number of purchasers paying
that which is known as the Mid-Conti-
nent schedule calling for prices up to
81 cents o barrel for oil of 40 degrees
and above, increased during the past
two weeks, the quantity being moved at
that price decreased with the applica-
ton Of pro-ration on many Of the
properties.
Price Changes Frequent.
With the increase In the activities OF
the larger purchasers in the field re-
Gently, frequent changes in posted quo
tations have taken place. The strong
efforts to raise the level Of prices made
by several of the major purchasers by
their posting Of the Mid-Continent
schedule were of little avail The pur-
chases by the smaller refiners included
such a large part Of the daily produc-
ton that the various prices posted
above those which were being paid by
these interests represented more of q
Quixotic gesture than an attempt which
could hope to stabilize the crude
market. In fact, the Tide Water inter-
ests following the establishment of
connections at the Mid-Continent
schedule, reduced its prices to q fat
runs increased to 10000 barrels a day
some three weeks ago. The new prices
are more representative of the weighted
average price of the field. 1t Is believed
that most Of the Oil sold on contract
is included in the new range of quota
tons. In fact, recently some of the
large contracts have been made at fiat
prices of 80 TO 35 cents a barrel. The
Atlantic Refining Co., one Of the latest
purchasers, Is reported to have paid
this price for long term delivery. 1t
u Sdlu CnaL commitments LOT many NIL
lion barrels have been made within the
past three weeks at prices incorporated
within the new schedule.
Several Plants Closed.
Whether or not the recognition BY
the major units Of the low prices will
spread TO other areas, President Parish
OF the Humble has indicated that this
possibility Is directly tied up with the
results of the curtailment efforts in the
East Texas area. Several operators are
discussing the advisability of shutting
down their producing operations on old
leases in North Texas. They are con-
fronted with not only a declining
market, but also q narrowing one.
Although the strength in natural
gasoline continues, the weakness In the
refinery gasoline is still apparent. Last
week one transaction Of as cents q
gallon is reported to have been made
from the raw material purchased in
North Texas at prices below the posted
market. The tendency to shut down
gasoline plants manufacturing the saso-
line from the natural gas is still a con-
tributing factor in the natural gasoline
market. One of the largest operators
in the Texas fields has shut down sew
eral small plants during the past two
weeks.
(oopyright, 1s31)