European Stars and Stripes (Newspaper) - August 8, 1990, Darmstadt, Hesse                                Stocks skid As Oil hits 5-Yearprice hike fuels growing Public outrage by Stefan Fatsis a business writer concern Over the spiralling Cost of Oil triggered the worst one Day fall in Stock prices in almost a. Year monday and gasoline station owners officials and consumer groups accused the major Oil companies of exploiting the Mideast crisis by jacking up prices. Oil prices soared to a five year High and Stock tar sets were shaken by near Panicky Selling sparked by fears that the spillover from the crisis could topple the teetering . Economy into recession. The Dow Jones average fell 93.32 Points to 2716.34, its steepest decline since oct. 13, 1989, when the widely watched Market barometer fell 190.58 Points. The Tokyo Market fell sharply for the third straight Day upon opening tuesday. Companies and some analysts attributed the soaring gasoline Price increases Over the weekend to higher costs fluctuations on the frenetic Oil markets and added demand during the summer driving season. A this whole Damn thing stinks to High heaven a said Rocco Gunti Luclla a Gulf service station operator in Freeport . A Why Are they Able to get away with it by raising the Price of Gas the Way ?�?�. Lee Lauer who Heads a group of dealers in Kansas and Missouri said there is no shortage of either crude Oil or refined gasoline. A a it a just a thing the refiners Are doing to make extra profits a he charged. Random checks of Gas stations around the country showed gasoline prices at the pump rising As much As 14 cents per gallon since Iraq seized Kuwait last thursday. Prices for Home heating Oil on the futures Market also have risen sharply. The american automobile association said the average Cost of self service unleaded gasoline increased 11.1 cents from last thursday to $1,186 per gallon including a 7.1-Ccnt jump Over the weekend. The interstate Commerce commission said the average Price of diesel fuel Rose 8.6 cents to $1,186 per gallon. The american trucking association representing 4,000 motor carriers asked the inc for authority to raise freight rates on one Days notice because of higher fuel prices. Increases normally arc allowed Only on seven Days  american world airways announced a 10 percent fare increase on All its flights to offset rising Jet fuel costs. Northwest airlines announced an $8 per ticket fuel surcharge on Friday. Officials in Massachusetts new Hampshire new York Texas North Carolina new Jersey and Pennsylvania said they would investigate allegations of Price gouging by Oil companies. In Washington a House panel set a hearing tuesday on the Price jumps. Transportation Secretary Samuel Skinner said his department would gather information in the coming Days about the rapid hikes. A we just do not understand the basis for the Price Oil Jas sex Tom if a a i pad Wash we t19 Price boards display Dat these Gus stations on the new Jersey Side of the Holland Tunnel monday showed regular unleaded gasoline ranging from a Low of $1,059 per gallon to a High of $1,159. Increases seen in the last several Days a Skinner told the american bar associations annual convention in Chicago. Presidential spokesman Marlin Fitzwater said a it is not Clear that All of the increases that have been reported at the consumer level arc  Gas station owners say they have Little influence Over prices set by gasoline distributors and refineries owned by the major Oil companies. They contend the Oil companies  be increasing their prices immediately because higher priced crude typically takes up to 90 Days to reach the refineries. In theory they said the costs  be passed to Consumers until then. Oil companies note that crude Oil prices have shot up drastically since last month and the Iraq invasion of Kuwait is Only the latest reason. Prices for the Benchmark Grade of crude exceeded $28 a barrel monday up sharply from $ 16 a barrel in Early july. It was the highest level for West Texas intermediate crude since August 1985, when the Price reached $28.08 per barrel. A but retail prices have gone up much less a Texaco inc. Spokeswoman Anita Larsen said. A refiners Are not yet recovering in the marketplace  portion of crude Oil Cost increases that they be already  an embargo on iraqi and kuwaiti Oil by the United slates and Europe has reduced world Oil supplies and increased demand raising More pressure on prices. In addition . Oil companies now Purchase targe amounts of gasoline on a a spot markets for immediate delivery where prices can Moye rapidly a the marketplace is reacting to uncertainties in the car term Supply situation resulting from the Iraq in Vasion and the sanctions a Exxon corp. Said in a statement. Industry officials said companies also Are increasing the Price at the pump now to cover for higher Cost of replacing crude Oil in the future if crude prices fall a this is not a major Oil company phenomenon at All a said Energy Industry analyst Trilby Lundberg. A Ali is a general refining capacity crunch in the summertime that ordinarily would l hit us this hard except for the invasion of  citizen action a Washington consumer group Thal claims More than i million members called the pump Price increases a blatant acts of economic aggression Quot by Large companies a profiteering at a time of International  Oil dependent Midland Texas finds Little Joy in Middle East crisis Sands of Timo by Lisa Belkin Midland Texas not a Tripp Wommack who has been buying and operating Oil Fields Here for 10 years scanned the Bullet room at the Petroleum club. Quot see no Champagne corks popping a he said digging into his blood rare roast inf Quot anyone who s out celebrating is a idol a those who make their living directly or indirectly from Oil in Midland a and that a almost everybody in this West Texas town a take pains to say that they Are not nearly As Happy about iraqis invasion of Kuwait As they assume the rest of the country assumes they Are. They Are pleased certainly that tier years of depression and modest recovery the Price of their primary product has nearly doubled in the past month closing at $28.05 a barrel monday. And they do not deny that it has been More fun to go to work since last thursday than it has been in years. And they Are not above a kind word for the iraqi president. Saddam Hussein. A the May he a despot but he s our despot a said Joe o Neill an Independent Oil operator. But mostly they arc cautious Quot people Here Are Snake bit a Wommack said Quot they re superstitious. They know if they get too excited they d just feel stupid when it drops hat Down. And they re tired of feeling  a decade ago an invasion of Kuwait and the resulting increase in the Price of nil would probably have brought unabashed Celebration in Midland. Hose were the Giddy Days of the Oil Boom when each barrel sold for nearly $40 and there were More millionaires per capita in Midland than anywhere else in the country. The Price began to fall in the Early iu8jjs, and by 19s6 it was Selling lors or $9 a barrel. Banks tailed businesses closed foreclosures soared. Midland Learned it was not forever blessed. The initiation fee at the Petroleum club was $7,500 five Summers ago now it is $2,500. Despite the discount membership dropped by nearly one Quarter. The lesson Learned by the City o do Ijo people goes like tins rambunctious outsiders flocked Here to take advantage of the Boom then left when their House of cards fell. I he cautious old timers say they Are seeking stability rather than spectacular profits. Quot you can t do business when prices arc this unstable a said Henry Mussel Man president of Mussel Nian Owen and King Oil and Gas producers. In Al feet Oil producers say they want much the same outcome in the persian gut As the rest of the country does Quot we re not out there rooting for Iraq a said Mussel Nian. Midland a land of Cowboy boots and pickup trucks the place where George Bush founded his Oil company prides itself on its patriotism for that reason too these oilmen Are insulted at the suggestion that they Are secretly pulling for Iraq. A a drastic increase would harm the nation a said Jack Blake who has been in the Oil business for 41 years and is now an Independent producer. "1 love my country first and Foremost. Id hate to see it go into a recession because of a . In the stars and stripes40 years ago Tacay ,. Aug. 8, 195u american marines and army troops launched the first hip u a offensive of the a week old korean co Lliel pushing Forward an estimated four miles.30 years ago today. Aug. A 1960 a armed Urban militiamen began taking Over an estimated $700 million Worth of . Property ordered seized by preside no Lipfel gasito20 years ago today. ,. Aug. 8, 1970 a West Germany and the soviet Union initiated a draft seat it renouncing the use of Force Ami affirming the inviolability of european Borders. I lie Accord did not Rule out the principle of eventual German tin dilution.10 years ago today. Aug. 8, 1980 a it mailed by 210 police 70 iranian  hoarded vans and cars and Jelt an islamic enter in new Vork follow my an angry protest by 4 to people that blinked their attempts to return to Washington