Cheaper Oil?

The bugbear of the oil industries has been the large stocks of both crude oil and gasoline on hand. Yet some months ago, as soon as the excessive preceding production had begun to slow up, prices for both crude and gasoline were rapidly jacked up. The oil men in adopting this policy were obviously trusting that production would remain steady or decline further, while consumption would be record-breaking.

The lack of enthusiasm current concerning the oil industry has directly resulted from this policy of higher prices. Consumption of gasoline, while in heavy volume, has nevertheless been much less than anticipated, owing to the late Spring and the curtailed motoring season. As a result, gasoline stocks, although declining, are still 2,148,577 barrels. But the higher prices for crude at once stimulated higher production. For the week ending Aug. 16, output for the country was 2,029,650 barrels-- an increase of 19,000 barrels over the preceding week, and only about 235,000 barrels behind the smashing production of mid-August, 1923.

Now the Pennsylvania buyers are lowering their bid for crude oil, and a lower price level all along the line is expected in some quarters. Only by such means, it is argued, can the large stocks of refined and crude oil be successfully disposed of.