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.

The drop in gasoline prices could benefit consumers and cool inflation. But it also may be a sign of economic weakness withBefore this week's drop, gasoline prices had posted a 7.4% jump in the third quarter, riding increases in crude oil futures after production cuts from Saudi Arabia, Russia and other OPEC+ members.

The four-week average of motor gasoline product supplied - a proxy for demand - averaged 8.3 million barrels a day, down 5% from the same period last year, the U.S. Energy Information Administration said on Wednesday.

 

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