RISE IN PRICE OF KER NE

Hot Lakes Chronicle, Volume 2, Issue 127, 3 July 1895, Page 3

RISE IN PRICE OF KER NE

The petroleum market, says the New York World of April 9th, took a jump which, a dozen or more years ago, would have wrought a panic on a half-dozen exchanges. Field oil—that is fresh cil from the wells—went up 10 oent per barrel, and ran from 110 to 120. Oil certificates which are warehouse receipts for oil stored in great tanks of the Pipe Line, went up" from 110 to 130 bid without bringing out a single certificate on the New York Petroleum Exchange. The bidder in each case was the Standard Oil Company, and something of the sort has been looked for by far-seeing observers for some tmio past. The simple fact is that the Pennsylvania and adjacent oil fields are not yielding sufficient crude oil to meet the demand, The consumption is about ICO.OOO barrels per day and the outflow from the regular field wells is from 70,0000 to 75,000 barrels. This leaves a deficiency of 25,000 barrels per day, which is drawn from the tank supply, represented by the certificates from the pipe-line tanks. These certificates, which were quoted as low as GO cents a few months ago, have been bid at higher and higher rates, but are closely held by those who know tho plight in which the Standard Oil Company is. This great trust mußt have the crude oil to work up, and, as it handles 85,000 barrels out of the daily consumption of 100,000 barrels, it is the most interested bidder and, in normal circumstances, practically dictates the market. It controls the pipe-lino businesp, and this gives it tho power to fix prices for field oil. Of late L'ma oil, tho vile-odoured stuff which ' conies from tho Ohio field, has gone up fiom 15 to (!0 cents por barrel, and is finding a market in the scarcity of | Pennsylvania oil.