End of Oil Exchanges
Standard Oil curbs the excitement of unruly speculators trading oil and pipeline certificates.
In a sign of the growing power of John D. Rockefeller at the end of the 19th century, Standard Oil Company brought a decisive end to Pennsylvania’s highly speculative — and often confusing — trading markets at oil exchanges.
On January 23, 1895, the Standard Oil Company’s purchasing agency in Oil City, Pennsylvania, notified independent oil producers it would only buy their oil at a price “as high as the markets of the world will justify” and not necessarily “the price bid on the oil exchange for certificate oil.” The action would bring an end to the “paper oil” markets of brokers and buyers.
