464 MINERALS YEAR]300K

crude oil needed to supply the excess of exports of refined products over
imports (about 46,000,000 barrels) is nearly balanced by the production of
natural gasoline and benzol (37,000,000 barrels) and the net decrease in
stocks of refined products (11,000,000 barrels), both items of which are
included in the figure of domestic demand for all oils.
Demand for crude petroleum, 1931—3~3
[Thousands of barrels of 42 U.S. gallons]

1931
1932
Production                                                   
851,081
781,845
Imports                                                      
Decrease in stocks                                              
47,250
40,963
44,688
32,201
Total new supply plus decrease in stocks                         
939,294
858,734
Runs to stils~


Domestic                                                 
847,671
46,937
894,608
25,535
19,151
939,294
777, 696
42,301
819,997
27,393
11,344
858,734
Foreign                                                   


Total runs to stills                                         


Exports                                                      
Fuel and losses..                                                


Total demand                                            


PRICES AND VALUES

 Final data on the value of the crude petroleum produced in 1932 are not
available, but it is estimated that the total was about $680,000,000, an
average of about $0.87 per barrel. The total value represents an increase
of nearly $130,000,000 (24 percent) over 1931, which shows that the gain
in average price ($0.65 per barrel in 1931 to $0.87 in 1932) had far more
influence on total value than the seemingly large decline in output.
 In general, the crude-oil price was lower at the end of 1932 than at the
beginning, but there were a few times during the year when the market was
classed as strong. The price record of East Texas crude wa~s fairly representative
and may be used to illustrate the trend in Mid-Continent. The price of 38—38.9
gravity East Texas crude on January 1, 1932, was $0.81 but advanced to $0.98
on April 1. This increase, and a smaller one on October 15, were justified
by the purchasers on the basis that stocks were being steadily reduced and
that the producers should be rewarded for curtailing output so effectively.
However, it became evident that considerable "hot" oil, or oil in excess
of the allowable, was being produced and sold under the established prices,
a condition that became acute after the second increase in price and as the
demand for crude decreased with the approach of winter. Accordingly, the
price of East Texas crude was reduced to $0.75 on December 15. In general,
posted prices in fields outside the Mid-Continent and California were increased
in April in response to the improved "statistical position," but either fell
or were weakening at the time of the second increase (Oct. 15). Prices in
California were changed only once—on June 26, when most light grades
were advanced about 33 percent.
 The price trends of certain representative grades of crude petroleum over
a period of years are shown graphically in figure 39.