I have been reading a lot on my favorite news topic: gas prices and oil supply. You can get more than your fair share of opinions on it on my most viewed site gasbuddy.com.
One thing that struck me while reading the NY Times recently is that the news that China and Mexico are stopping the subsidization of gas prices did not seem to be much big news in the gas price news world.
It seems to me that the fact that people in China and Mexico will now have to pay 2 to 3x what they are paying now will have a HUGE downward effect on the demand for oil. I could be wrong, but look to see the oil price plunge in the next few months.
Don’t get too happy though. The supply will keep going down and demand from population growth will keep going up, so gas prices will continue to rise long term. We need to do what we can to replace oil NOW! Buying a gas saver car is just the beginning.