U.S. controls oil sales

Press, Volume CXIII, Issue 33373, 3 November 1973, Page 15

U.S. controls oil sales

. f.V.Z. PA.-Reuter—Copyright) i NEW YORK, November 1. . A mandatory allocation programme covering home-heating oil, jet fuel, diesel fuel, kerosene and other “middle distillates.” has been imposed by the United States Government, which is faced with shortages expected to range from 100,000 barrels a day to perhaps 800.000, and with an additional cutoff of Arab oil. The Department of Defence has been given special priority to buy domestic petroleum ahead of other customers, adding further pressure to already-hard-pressed domestic supplies. The nation now may have to provide up to 340.000 barrels a day to American Forces overseas, some of it to the fleet in the Mediterranean. Americans driving to work today found some petrol prices raised by up to 3c a gallon. Those travelling greater distances, by air,

found fewer flights to choose from: the three largest airlines — American, Trans World and United — have dropped 80 flights because of a shortage of airline fuel, and most other companies also announced flight cuts. The Office of Oil and Gas expects the Arab cut-off to be felt gradually in the United States in about two weeks, when tankers en route from the Middle East just before the oil embargo began have unloaded their cargoes. The Canadian Government, itself faced, with winter oil shortages, has raised the tax on oil exports to the United States from the equivalent of NZ27c to SNZI.3O a barrel. Eastern Canadian oil and petrol prices have been raised by NZ2c a gallon. Bolivia has raised the export price of crude oil by SNZI.4O a barrel with immediate effect. The increase, affecting Bolivia’s Latin American trading partners, raises the price from about SNZ3.SO to SNZS a barrel. Bolivia exports 30.000 barrels of crude a day to Argentina. Peru. Chile, and Brazil. Bolivia is the second Latin American oil-exporting nation to raise crude oil export

prices this month. A 56 per cent price increase for Venezuelan exported crude went into effect today. President Caldera of Venezuela today gave assurances ■ that no foreign oil companies would be required to hand [over their installations to the! ■ State during the remainder; ,)of 1973. Under Venezuelan law installations of foreign [oil companies revert to the [State when their concessions J expire. [ Most concessions now in (force expire in 1973, but the President has stated: “There ‘will be no decree, no suri prise, no announcement, in 1973.”