Historically low inventories could amplify fuel-price pressures, while supply disruptions and higher oil prices risk feeding through to inflation, consumer spending, production costs and monetary policy.
Oil and gas executives warned the White House that gasoline prices could surge as inventories fall to historic lows, underscoring a broader energy-market strain that could spill into the wider economy. The latest framing adds that rising oil prices tied to supply disruptions may fuel inflation, pressure household spending, lift manufacturing costs and complicate monetary policy as officials weigh the economic impact of higher energy costs.