Record high crude oil inventory = lower gasoline prices = consumer windfall

Bespoke Investment Group published a remarkable chart showing the record level of crude oil inventory compared to levels seen since 1984.  No wonder gasoline prices have fallen sharply since March.  The market strategist at Stifel Nicolaus has estimated that the drop in gasoline prices has generated as much as $100 billion in savings for U.S. consumers.  As you look at the chart on gasoline prices below (courtesy of gasbuddy.com), I am sure you will notice the similarity to the spike in gas prices last year in the Spring.  Fears of Middle East oil disruption arising from the “Arab Spring” contributed to the spike in gas prices which contributed to the slow-down in the U.S. economy in 2Q2011.  The slow-down was mitigated later in the year as gas prices coincidentally also dropped.  This may prove to be an instructive scenario for 2012.  It’s too early to assume growth has started to trend down.  Aberdeen companies continue to enjoy strong growth from surging wireless internet, SaaS and cloud computing adoption and online video.  Jeb Terry, Sr. June 21, 2012

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