Quote of the Day
8/10/04
Victor Niederhoffer: Quote of the Day
"[T]he higher oil price should benefit these companies [BP and
Total]...there is a very real concern that supply will fall short of demand ".
--Paul Morgan, 'a fund manager which manages about 2.7 billion in
UK stocks and owns
shares of BP and Shell...'
But usually supply does not fall short of demand. The price increase enhances the quantity supplied, and decreases the quantity demanded and such changes reduces the price. That's the fundamental law of economics corresponding to the laws of motion in physics. That's the reason that the collab and I found that stocks went up some 100 times as much as almost every commodity during the last century. When will this law assert itself for oil as it did for all the grains?