RIPPLES BEYOND ENERGY MARKETS
Higher oil and gas prices influence many parts of the world economy, from transportation and power generation, to commodity production and industrial activity. When energy markets become volatile, it forces companies to build in buffers such as by holding more stocks, reroute ships or delay shipments until risks subside – all of which add to costs that will eventually filter down to consumers.
Because oil is such a key input for most economies, rising prices tend to spill into inflation.
