US gasoline prices could fall to $3 a gallon on oil selloff, rising stocks

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- U.S. gasoline prices are heading south and may hit $3 a gallon in many places in coming weeks with crude oil futures down $10 a barrel over economic fears and eroding demand.

U.S. wholesale gasoline prices are tumbling, with percentage drops per gallon on Wednesday between 6.9% and 10.8%. Demand data was partially influenced as drivers were deterred by severe rain and flooding on the U.S. East Coast."All told, fuel prices may be closer to consumers' pain threshold than inflation-adjusted prices might suggest," JP Morgan said in a note on Wednesday, indicating that high prices have led to consumers cutting back on driving.

 

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