RUSSIAN OIL

Timaru Herald, Volume CXXXVII, Issue 19308, 8 October 1932, Page 16

RUSSIAN OIL

The Canadian Aluminium Company I has caused quite a flutter in American oil circles through their deal or barter with the Soviet whereby they supply the aluminium goods to Russia and , receive payment in oil. The whole business must be much more interesting that it appears at first glance. The Russians are accused of playing a “trick” by supplying refined oil when “crude” oil was agreed upon, but it is not likely that the company which gets refined oil at the price of crude oil. will enter much cf a protest. A few years ago freight, duty, primage, etc., cost more in bringing American oil into New Zealand than the oil cost in America. We were informed through the Press recently that petrel was being retailed at about 7-ld per gallon in America, so what must it be selling at in Russia when they can send it from the Black Sea and cause a flutter in that land of oil and motor cars? Our export boards have been exploring the world for new markets for our produce, or so we have been told. Russia could no doubt do with a few shiploads of New Zealand wool if she had the money to pay for it so what is to hinder the Meat Board or the New Zealand Sheep-Own-ers’ Federation from giving a hint that they would exchange for oil—a pound of wool for a gallon of oil. Indeed it is possible that they would be prepared to give two gallons of oil for lib of wool, but when we only got about 4d. for our wool last year and had to pay 5/-, 6/-, and 7/-, per gallon for our oil, we could aford to be generous. The flutter which it would create in New Zealand oil interests would be worth going a long way to see.