The economics of petroleum . Fig. 115. The pricetrend for kerosene shows responsesto all the major events involved inthe price of crude petroleum, exceptthe slight reaction of 1919 duringwhich period kerosene steadily ad-vanced in price. Throughout 1917,1918,1919 andmost of 1920, kerosene displayed asharp and strikingly consistent up-ward tendency. This course wasespecially notable in view of thedemoralization of the normal foreign demand during much of that period. i9h 1915 1916 1917 1918 1919 192a 1921 The explanation lies in part in war Fig. 114.—Comparison of the aver-requirements and rela
The economics of petroleum . Fig. 115. The pricetrend for kerosene shows responsesto all the major events involved inthe price of crude petroleum, exceptthe slight reaction of 1919 duringwhich period kerosene steadily ad-vanced in price. Throughout 1917,1918,1919 andmost of 1920, kerosene displayed asharp and strikingly consistent up-ward tendency. This course wasespecially notable in view of thedemoralization of the normal foreign demand during much of that period. i9h 1915 1916 1917 1918 1919 192a 1921 The explanation lies in part in war Fig. 114.—Comparison of the aver-requirements and related causes, age export price with the averageand in part in the rise of automotive domestic price of kerosene by years, , 1 r 1 1913-1920. demands lor kerosene. The Price of Fuel Oil.—The fuel-oil market is complicated by extensive sales on contract, with the result that much of the output changes hands at prices more or less at variance with the spot quo- / / / / AVR. dAm. P ^•^ /1 ^ ^^ y , — - ^..d^VR. ;xp. •RICE. 1913 1914 1915 1916 1917 1918 1919 1920 1921 Fig. 115.—Relative prices of kerosene and crude petroleum by months, 1913-1921,in percentages of the average figures for 1913. (Average prices in 1913 = 100.) 24Q PRICES OF PETROLEUM AND ITS PRODUCTS tations. In consequence, the fuel-oil chart representing an averageof spot quotations must be allowed a larger margin of error than isto be accorded the other price cui-ves in this chapter. Although the variations in the price of fuel oil are numerous andabrupt, there is a notable conformance, both in trend and in actuallevel, to the price of crude petroleum. (See Fig. 116.) This arisesfrom the fact that crude petroleum is always open to purchase as anatural fuel oil, and hence fuel oil proper normally seeks, and can INDEX 500 400 300250 200150 1009080 7060 50 •A i c-^^ ^1 1 . /N^ - ^~\ «-FUEL C ML v I / V/ / Y \\y A 1 ^ •\ / \ \J \-.**-< !RUDE PI TROLEU A 1913 1914 1915 1916 1917 191G 1919 1920 1921 Fig.
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