Gas Prices Could Drop to $3 as Weak Demand and Economic Fears Send Oil and Refining Margins Plummeting

U.S. gasoline prices have fallen and may hit $3/gallon soon as crude oil futures drop $10/barrel on weak demand and economic fears.

Gasoline demand is at 26-year seasonal lows per U.S. data, with prices deterring drivers. Stocks built sharply last week.

Refining margins have plunged 40% in a month to lowest levels since 2020, with gasoline crack under $10/barrel.

Prices could fall to $3/gallon in parts of Midwest, East Coast this fall, from current national avg of $3.77/gallon.

Drop is unusual given OPEC cuts, Russia diesel ban, maintenance curbing fuel output, indicating economic pain from rate hikes.