"Best Day"

Totally unexpected, "the best day in over a year" came to oilmen last week. Giving the day its supremacy were two items. First was the raising of crude prices by Standard of California, then by other producers of the State. Second was the upholding of the California natural gas conservation law by the Superior Court of Los Angeles. Both actions may have far-reaching effects. Standard's move, first advance in California since August 1928, was said to be in the nature of a reward for producers who have cooperated in curtailing production, but it started reports that other fields will follow. In any case the ultimate effect will be to help the caster; markets, now suffering from the dumping of cheap California gasoline. Equally beneficial will be the court's decision, for, assured of its legality, other States are said to be ready to pass similar conservation laws.

Later in the week a bearish development came in the sudden renewal of the Standard of New York-Shell conflict in the Far East. First intimation of this was a report that Shell, which recently cut kerosene in the Far East by 40%, had slashed gasoline from 27 1/2 to 19-c- in the East Indies. A probable cause: Standard has signed a $25,000,000 contract for Soviet refined products. It was this buying of what Shell calls "stolen oil" that precipitated the conflict between the companies three years ago. Complicating the affair this time is Shell's recent invasion of the Atlantic Seaboard and, more recently, the Rockies. Other U. S. oilmen are not concerned by a Shell-Standard fight that takes place in India and the Far East, but would all feel it should Shell carry the fight to the U. S.

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