Evening star., 1939-08-30
Crude Oil Prices
Show Rise as End
OF Shutdown Nears
Lower Prorution Idea
Finds Support in
Petroleum Circles
BY the Associated Press.

ASo&A, onAu., AAS. Wv IAOAuS~
ton of crude oil-and its price
Surged upward today as the shut
down of wells in six Midwestern
States approached an end.
An unprecedented experiment,
stoppage of So per cent OF the Ma
tion's production was ordered by
Texas, Oklahoma, Kansas, Louis
lana. New Mexico and Arkansas
when many major purchasers of
crude dropped the price an average
of 20 cents a barrel.
Texas, which produces nearly 40
per cent of the Nations oil, permit
ted its $4,000 wells to reopen today,
two days ahead of expectation.
Humble Oil e. Refining Co., largest
producer and purchaser in Texas,
.rescinded its price reductions. Most
other majors which had not already
taken similar action followed
Humble
Sinclair-Prairie Oil Marketing Co..
which started the price slashing
August 10 with 20-cent cut, let it
lower postingS stand
Arkansas Lifts Ban.
Arkansas already was gradually
lifting its shutdown Louisiana S
expired last night. Oklahoma Off
cials set am. Friday for resump-
ton of production.
The Kansas Corporation Com
mission gathered today to decide
when restrictions will be lifted, and
indications were New Mexico will re-
open Saturday.
The general shutdown was
drastic remedy" said Ernest O..
Thompson, member of the Texas
Railroad Commission and chairman
of the Interstate Oil Compact Com
mission. but it brought the patient
through in beautiful shape"
Texas, which led in the shutdown,
had planned to end it Friday, but
Chairman Lon A. Smith said the
Railroad Commission was besieged
by requests for a return to pro-
duction.
Sees Purpose Accomplished.
AL this clamoring for crude
showed the shutdown had accom-
pllshed its purpose of making oil
scarce he added.
Crude oil stocks had shrunk
sharply. Small refineries felt the
pinch of low crude reserves but
refining continued briskly with gas
oline prices at the plants moving up
rapidly. The higher gasoline prices
were not generally passed on to the
consumer
Oh circles awaited possible prora-
ton revlslons. Lower allowable pro-
duction figures were favored by
many oil men, who pointed out
oVerproduction now might weaken
the price structure again.
Oil men also sought an interpre-
tation of an exchange of letters
between President Roosevelt and
Gov. Henry Horner of Illinois.
Illinois producers, unrestricted by
proration, have been selling an in
creaSlng amount of oil.
Contents of the letters were not
disclosed.
NEW YORK. Aug. 80. Daily
crude oil production in the United
States in the week ended August
rs averaged $780, 300 barrels COM
pared with 2.480,55O barrels the
previous week and 3,388.5OO a year
ago, the American Petroleum In
stitute reported.
Declines were registered by all
major producing areas except Illi-
nols, where the output rose 16,6OO
barrels day. Largest decreases were
shown by the six mNlcontinent
States enforcing Statewide Shut
downs, where production dropped
off abruptly.
Refinery operations declined only
moderately, however, as reporting
refineries slowed operations to 1913
per cent of capacity from 86.5 per
cent the previous week. Runs of
crude to stills for the industry as
whole were estimated at BATS 900
barrels day compared with 3,575,-
600 barrels the week before and
3,269,000 a year ago.
Stocks of finished and unfinished
gasoline at refineries, terminals, in
transit and in pipe lines totaled
73,475, 900 barrels at the end of the
week, against 74,738,OO0 barrels
week ago and 1888, 10000 at the
same time last year.
Imports of crude and refined oils |
at principal ports during the week
aggregated 100000 barrels, COM
pared with 1,053,0O0 barrels the
previous week.