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CALGARY -- Reports from two of Canada's biggest banks say rising gasoline prices are going to have a major impact on U.S. driving habits.
CIBC World Markets economist Jeff Rubin says gas prices in the U.S. will hit US$7 a gallon -- the equivalent of C$1.86 a litre -- two summers from now.
Rubin says over the next four years we're likely to see "the greatest mass exodus of vehicles off America's highways in history,'' with some 10 million fewer cars on the road by 2012.
Another report by Scotia Economics says Americans are opting for smaller more fuel-efficient cars over gas-guzzling SUVs and pickup trucks.
Carlos Gomes, an auto industry specialist, says small cars now account for one-quarter of overall U.S. sales, up from 16 per cent last year.
The meteoric rise in global crude oil, which was trading at US$138 a barrel on the New York Mercantile Exchange midday Thursday, has been a major factor in soaring pump prices.