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. It causes inflation and it reduces the wealth-effect among consumers. When consumers feel less rich, they will spend less. Thus, oil prices this winter could cause an economic slowdown and push prices to inflationary levels. Just how bad it will be is unknown.