Trend of Prices in the Petroleum Industry (c24337f6-ff89-425d-a152-4e641f733d56)

THE prices of crude petroleum and its derivatives have shown an upward trend from 1915 to 1920, and a downward trend from 1920 to 1923, see Table 1. Over the former period, oil prices were dominated by the rapidly increasing demands and inflation incident to the war and its aftermath, while over the latter period oil prices were influenced at the outset by deflation and then by the conditions of overproduction that have characterized the past three years. The purpose of this paper is to analyze the broader features of the more recent price movements in the petroleum industry and to relate these features to basic economic conditions in the industry.