Sulphur Springs News-Telegram (Sulphur Springs, Tex.), Vol. 113, No. 14, Ed. 1 Thursday, January 17, 1991 Page: 4 of 14
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4—THE NEWS-TELEGRAM, Sulphur Spring*, Tiui, Thursday, January 17,1M1
Oil prices crash as
U.S. attack unfolds
By DIRK BEVERIDGE
AP Business Writer
NEW YORK (AP) — Oil
prices crashed today as the first
U.S.-led air strikes on Iraq ap-
peared successful, raising
prospects of a short conflict that
would free the world from the
threat of supply disruptions.
At the opening of trading on
the New York Mercantile Ex-
change, traders tried to sell oil
for K4.50 per barrel, a record
$7.50 cheaper than Wednesday’s
close of $32, but no one would
immediately buy at that price.
That triggered an emergency
one-hour halt in trading under
emergency anti-volatility rules,
the first time the limit has been
imposed.
Oil prices spiked in off-hours
trading to about 540 per barrel
when the bombing of Iraq began
on Wednesday night, but prices
soon began tumbling when it ap-
peared the war was going well.
Oil prices have been kept high
by war fears at a time when
world crude supplies are ade-
quate, and traders had predicted
sharp drops once the threat of
war-induced supply disruptions
had subsided.
News that the United States
would release crude oil from its
NEW YORK (AP) — The
stock market swept ahead today
in a euphoric response to initial
signs of success in the military
campaign against Iraq.
“It’s a powerhouse opening,’’
j said one investment manager,
1 Robert Stovall at die firm of
Stovall-Twenty-First Advisers
Inc*
The Dow Jones average of 30
industrials jumped 86.39 points
to 2,595.30 by noontime on Wall
Street, 2‘/i hours after trading
began with a minute of silence
on the floors of the New York
and American stock exchanges.
Gainers outnumbered losers
by more than 8 to 1 in
strategic reserves to calm fears
of shortages also contributed to a
stunning price turnaround in one
of the most volatile 12 hours in
the history of oil trading.
North Sea Brent Blend crude,
an important grade of crude
traded in Europe, opened in
London at $23 per barrel, about
S2 lower than levels set at the
tiose in Tokyo hours earlier.
After trading near that level
through much of the morning on
the International Petroleum Ex-
change, the March contract sank
to $21.30 a barrel by midday,
down $7.67 from Wednesday's
close.
Prices were also pressured by
the International Energy Agen-
cy’s announcement that it
notified its member countries to
activate its emergency jjtf plai^
which will make 2.5 milliWl bar-
rels of additional oil a day avail-
able to the market within 15
days.
The European Commission,
meanwhile, ordered its 12 mem-
ber states to Cut oil consumption
by 7 percent because of the out-
break of war in the Gulf.
The air raid Wednesday night
sent some oil companies into a
flurry of private, cash trading in
such petroleum centers as
Houston and New Orleans. Oil
nationwide trading of NYSE-lis-
ted issues, with 1,473 up, 172
down and 208 unchanged.
Stock markets around the
world rallied sharply through the
night as investors watched the
progress of air strikes in Opera-
tion Desert Storm. President
Bush said this morning that the
mission was “going forward
with great success.”
News accounts of what had
been happening in the attack sent
bond prices soaring and interest
rates tumbling in the credit
markets. At the same time, oil
prices plunged.
analysts in New York said prices
soared to about $40 per barrot
almost instantly, but they soon
backed off.
Iraqi artillery shells destroyed
an oil storage tank at the Saudi-
Kuwaiti border, but no casualties
were reported and oil production
was unaffected, company
officials said. The damage at
Japan’s Arabian Oil Co. reining
operation at the Saudi town of
Khafji was the first known
damage caused by Iraqi retalia-
tion. Saddam Hussein had vowed
to destroy Saudi oil fields.
Oil first started higher on news
of the U.S.-led offensive, but
soon began tumbling as traders
started thinking the Persian Gulf
war might be short and easy.
Traders in London also said
President Bush’s decision, an-
nounced after the air strike, to
open the U.S. Strategic
Petroleum Reserve also pushed
prices down.
“Oil prices have toppled. The
market is taking its lead from the
successful air attacks in Iraq,”
said Steve Turner, an oil analyst
with the London investment firm
Smith New Court PLC.
“The consensus is that there’s
going to be a very short, sharp
war and that there is going to be
no disruption to oil supplies in
the Middle East,” Turner said.
He said traders’ attention will
now return to the fundamental
oversupply of oil in the market,
which will send the oil price
downward.
The Strategic Petroleum
Reserve, which contains about
590 million barrels of crude
stored in salt caverns in Texas
and Louisiana, would offer 1.12
million barrels of crude each day
for the next 30 days, the »
government said.
Even though that could put a
break on oil prices and ease fears •
of any supply disruptions, traders
recalled a test sale of SPR oil
during the fall that was unable to
bring down rising oil prices at
the time.
Light sweet crude oil for
February delivery had closed at
$32 per barrel, up $1.93, Wed-
nesday in New York.
Wall Street
Easy tax forms may cost you
rather than help in the end
By George W Smith
Henry Ford once said you could
have any color Model T Ford you
wanted so long as it was black The
tax collector is a bit more flexible
Taxpayers have a choice of colors for
filing their income tax returns Be-
sides the standard blue 1040 “long
form" and the pink 1040A “short
form," the IRS offers an even simpler
one, the green 1040EZ. It is designed
for single taxpayers who have taxable
income of less than $50,000 “EZ," of
course, stands for “EASY ”
However, don't let the simplicity of
Form 1040EZ and Form 1040A lure
you into using either one unless you
are certain that it is in your best in-
terest to do so. Using the 1040EZ or
1040A might cost you tax dollars you
don't need to pay
Do a rough calculation to deter-
mine which form is best for you Total
your itemized deductions and com-
pare them with your standard deduc-
tion. If your itemized deductions are
greater than the standard deduction,
you will pay less tax by itemizing To
itemize, vou must file the long Form
1040
FORM 1040EZ (Green)
To use Form 1040EZ, a taxpayer
must:
• Be single.
• Not be 65 or older, or blind.
• Claim no exemptions for children
or any other dependents
• Have taxable income of less than
$50,000
• Have earned income from wages,
salaries, and tips only.
• Have interest income of $400 or
less.
• Have no dividend income.
• Not itemize.
• Claim no tax credits.
The 1040EZ has less than a dozen
FORM 1040 EZ
Adjusted gross income
subtract
standard deduction
6 and
exemption amount
Taxable income
Tax from tax table
subtract payments
(tax withheld)
Refund or
amount you owe
NEA Graphic
lines to complete Most of the instruc-
tions needed to complete the 1040EZ
are on the back of the form You will
need the tax table from the 1040A in-
structions to figure your tax. You can-
not request an extension of time to
file Form 1040EZ. After April 15.
1991, you must file either Form 1040
or 1040A
FORM 1040A (Pink)
If you have determined that you
will not lower the amount of tax you
owe by itemizing deductions. Form
1040A allows you a little more flexi-
bility than the 1040EZ. Unlike Form
1040EZ, 1040A can be used if:
• You are married or single
• You have dependents
• You are a qualifying widow or wid-
ower with a dependent child
• You are claiming a credit for child
and dependent care expenses, credit
for the elderly or disabled or the
earned income credit.
• You have dividend income.
• You have interest income of any
amount
• You have unemployment
compensation
• You make an IRA contribution.
• You receive an IRA distribution.
• You receive pension or annuity
income
• You receive Social Security benefits
that are taxable
FORM 1040 (Blue)
This is The Ultimate You should
file the 1040 long form if your item-
ized deductions total more than the
FORM 1040 A
Filing status
Exemptions
Total income subtract IRA
deduction
Adjusted gross income
subtract standard deduction
and exemption amounts
Taxable income
Tax from tax table
subtract child care credit
subtract payments (tax
withheld, earned income
credit)
Refund or
amount you owe
NEA Graphic
standard deduction. Your tax bill wity
be lower if you do. However, the IR§
requires some taxpayers to use Form
1040 even if they are not itemizing '
their deductions
You will have to file Form 1040 if:'
• Your taxable income is $50,000 of
more
• You have other income, such as al-
imony, self-employment income, cap*
ital gain, rents, royalties, partner)
ships, estates or trusts Also included
are prizes won in a lottery or raffle.
w You did not report tip income to
your employer as required
• You were a non-resident alien dur-
ing any part of 1990, and you are not
filing a joint return
You must also file Form 1040 if you
claim these adjustments to income:
• Deduction for self-employment
tax '
• Self-employed health insurance
deduction
• Alimony paid
Business
_Notes ■
JIM AINSWORTH, a certified
public accountant and certified
financial planner with Ainsworth &j
Lambert in Commerce, was
recently awarded the “President’s
Roundtable Award” and the
“Model Representative Award”
during a national conference of HD
Vest Investment Securities, Inc. in
Dallas. During the awards
ceremonies, Ainsworth received
more awards than any of the 2,800
registered representatives. He was
accompanied at the conference by,
his associates Leslie Killgore,
Monica Littlefield, Rosemary
Adams, Bonita Malone, Jean Fugitt
and his partner, Mary Lambert.
FOXWORTH-GALBRAITH
Lumber Company of Sulphur
Springs l\as announced that six asj
seriates “with the company ard
recipients of the annual 1990 Ser-
vice Awards Program-. The event
salutes company associates com-
pleting one year, three years, five
years, seven years, 10 years and 5-
year multiples of employment with
the company. Award winners in-
cluded Bobby Mathews — 25
years; Sue Tittle — 10 years; Wes-
ley Brewer -r- five years; Scott
Isham — three years; Jonathan
West — one year, and James
Robinson — one year.
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4
Grand opening
Bank promotions
catting ceremonies were held recently at the offices of Dr. Thomas R. Rogers, D.D.S. Staff menii- Charlotte Baxter, left, and Phyllis Irving have received promotions at First American Bank and Mortgage
...-- -* ” ~ “— "— “------J ”—1--“ -**-*----” according to Barry Orr, bank president. Baxter has been promoted *“““---**“-----‘--------
vice department. Irving has been promoted to mortgage loan officer.
hen, Ursa the left, Tammy Wetberill, Dr. Rogers, Peggy Rogers and Kathleen Davis cut the ribbon as Hop- according to Barry Orr, bank president. Baxter has been promoted to banking officer in the customer serf-
kins County Chamber of Commerce members look on.
—SUIT photo by Larry Barr
—Staff photo by Larry Barr
iff
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Stocks of
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Keys, Clarke. Sulphur Springs News-Telegram (Sulphur Springs, Tex.), Vol. 113, No. 14, Ed. 1 Thursday, January 17, 1991, newspaper, January 17, 1991; Sulphur Springs, Texas. (https://texashistory.unt.edu/ark:/67531/metapth824804/m1/4/: accessed April 26, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting Hopkins County Genealogical Society.