BENZINE SUPPLIES

New Zealand Times, Volume XLVII, Issue 10957, 20 July 1921, Page 7

BENZINE SUPPLIES

LARGE STOCKS IN DOMINION. FUTURE PROSPECTS. \ A merchant informed a “Times” reporter yesterday that there were large stocks of benzine in store in the Dominion.! The drop in prices in America had been Reflected in New Zealand, and quotations were now lower than they had been for a considerable period. In a large number of instances importers stood to lose heavily, as they had bought on a. rising market, and now that the price had fallen in America and freight had been reduced they were faced with the proposition of selling at landed cost price or holding present stocks for a problematical rise, which, if it does not take place, would mean a considerable financial loss. POSITION IN AMERICA. It had been recognised for some time, he continued, that the oil wells in America cannot continue to supply the increasing demand that is being made upon them, and the time was not far distant when the export trade would cease. The oil wells in Mesopotamia would not, it was stated’, be in a position to supply .oil for at least five years, and while the .wells at Baku, in Russia, were still* gushing forth crude oil, a large amount of capital expenditure would be necessary before adequate shipments could be looked for from that source. The agents of the various oil companies, however; state that they have been assured of ample supplies iu the future, now that the contracts with the British Government have terminated. Less benzine is being used today than was the case twelve months ago, due to the financial stringency, hut when the money market reaches a more normal condition it is anticipated that the demand will be even greater than it has been hitherto.