A freezing China and Russian Gas: More good news for hybrids?

China is currently experiencing its coldest winter in 20 years and this weather is only supposed to get worse in the weeks ahead. (more)

In the U.S., cold weather not only affects natural gas and heating oil prices, but gasoline prices.

So, will this cold weather in China create even greater Chinese demand for oil than previously expected?

To add fuel to the fire, Russian and Ukraine cannot agree to pricing for natural gas, which has disrupted the entire European supply of natural gas (more). This pushed oil prices up more than $2.00 in Europe and has oil prices at $63.00 right now in America.

While these events probably won't have a lasting effect on U.S. oil prices, they again demonstrate how susceptible oil and gasoline prices are to spikes in price. In reality, these events are minor, and the potential for a so-called "super-spike" in oil prices isn't at all far-fetched.

Those with hybrid cars will see even more gains in the years ahead because gas prices will go higher next year and the year after - even without any major problems to supply, refineries, etc.

On the other hand, if there are problems with supply or refineries, that "super-spike" will become a reality and the benefits of hybrid vehicles will become even more valuable.

Despite the naysayers, hybrids are a good investment today, and an even better investment for tomorrow.