We know demand will not slow and it appears that supply is slowly being increased but not nearly in time to feel any price relief this winter. Prices fall as supply increases throughout the system. An increase in oil production today will take months to travel through the entire pipeline and change prices at the pump and in your home. Meanwhile, airlines, truckers, shipping companies, and all other industries, which use transportation to ship their products, will experience higher fuel costs. This will result in corporations passing costs along to the customer.
Companies exist to sell their goods at a profit.
Wall Street demands certain margins and profit levels or stock prices will fall. In order to meet expectations, companies will raise the prices of their products and services to compensate themselves for the increased cost of fuel. Airlines have already begun passing along these costs. Oil prices have the power to produce a ripple effect across the American economy. Rising prices have two resulting effects.