KEROSENE.

New Zealand Times, Volume XXXI, Issue 4897, 1 December 1876, Page 3

KEROSENE.

We copy from the Journal of Commerce, published at New York on 22nd September, 1876, the following very interesting article on refined petroleum, which will give an idea of the large quantities that are being produced in the United state and exported to all parts of the world, but principally to Europe. When it is remembered that it is within a coroparative few years only that the trade in this article has been .developed, it speaks forcibly in favor of the perseverance of the owners of the wells in Western Pennsylvania. The brands of kerosene most favorably known are the “Diamond" and the “ Brilliant,” the illuminating power of the former being perhaps a little brighter than the others ; ‘ The great rise in the price of' petroleum during the past two months has attracted general attention to- this very important branch of trade. For several years past petroleum has sold very low, so low indeed that itisasserted it scarcely paid for the cost of obtaining it and the charges for transportation. Early in July of this year the price in this market began to be very firm, and on July 15 sales were made at 17i cents per gallon for common refined petroleum. The firmness continued, &nd on August 1 sales were made at 17f cents. By the 15th of that month a furthe advance of a J cent, had been made, and then the real excitement in the market commenced. The prices rapidly advanced, on some days jumping up several cents per gallon, so that by September 1 the price was from 26 to 27 cents per gallon. Since then the price has held very firm, though no further advances have been made. In' conversation with a Journal of Commerce reporter yesterday, Messrs. Babcock and Cox, well known in this market, and doing a very large business, but entirely as brokers, expressed the opinion that the great advance in the price had been solely due to natural causes. For three months past the daily consumption of petroleum has been about 39,000 to 40,000 barrels, as is shown by the shipments from the oil regions, while the average production has been only about 24,500 barrels. Consequently our stock,of petroleum has been drawn on to the extent of about 15,000 barrels daily. Besides this, we are now approaching the winter season, when, owing to the long evenings, the consumption of petroleum is greater than at any other period of the year. Added to these reasons for an advance is the fact that while the export of petroleum to_ Europe for this year is about equal to, or slightly below that of the corresponding period of last year, Europe is now burning more petroleum than ever before, so that the stock in Europe is now from 400,000 to 600,000 barrels less than it was last year at this time. Then, too, many new markets have been opened for petroleum throughout the world, and the consumption must of necessity increase. Meanwhile, notwithstanding the beat efforts that have been made in this direction, no new oil-producing territory has been discovered of any importance, and'there has been no increase to any great extent in the production. Thus, no ; great commercial article was now in a stronger position than petroleum, and that too without any artificial means being -used to affect the market. The market is entirely in the hands of the refiners, subject only to the great natural laws of supply and demand. ' The discovery of a new large oil-producing district would naturally again depress the price, but this certainly did hot look very probable at the present, and the tendency of the market for the time was decidedly upward. And this was something, that every American should rejoice at, forlt

. meant that Europe, instead of paying, as she has done for several years past, only 4dol. or sdol. per barrel for the, immense quantity of petroleum she yearly requires, nearly the whole amount of which is 'supplied by the Unite 4 States, had now to pay on an average about 12dol. per barrel. Petroleum had acted as a medium of exchange with' Europe during our late unpleasantness,” in the absence of cotton, and they did not see why, if the present supply continued, it would,not become an important element in arriving at that much desired event —the resumption of specie paymfents. 1