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Rising gasoline prices: the Americans remiseront their cars

The gasoline soon sell U.S. $ 7 a gallon in the United States, compared to about U.S. $ 4 now, and this will make the use of a car too expensive and will result in the scrapping of more than 10 million vehicles in this country over the next four years, according to a study by CIBC World Markets.

In this context, the automotive industry already facing significant difficulties to weaken further.

According to CIBC, the growing global demand combined with persistent challenges on the side of supply will push the price of oil has more than U.S. $ 200 a barrel by 2010.

The economist and senior strategist at CIBC World Markets, Jeff Rubin argues that this will drive up prices at the pump to nearly U.S. $ 7 a gallon. He believes that by 2012, there will be some 10 million fewer vehicles on American roads, higher than during the previous oil crises. Many people who will stop using their cars will be a low-income Americans, those households earning less than $ 25,000 U.S. per year. The current level of their usage of their vehicles, refueling will represent 20 percent of their income, compared to about 7 per cent currently. Several gradually begin to take the bus, said Mr. Rubin.

In 2004, gasoline prices at the pump in 2004 in the United States hovered around U.S. $ 1.80.

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