NEW YORK | Many U.S. firms appear to have absorbed the recent oil-price shock without fully passing higher costs to customers, but that does not remove the pressure from margins.
Reuters reported that a Federal Reserve survey of chief financial officers found widespread cost pressure from higher oil prices, while fewer firms reported raising prices. EIA’s June outlook continues to frame oil and fuel markets as a risk channel for businesses and consumers.
For businesses, the next question is whether a decline in crude prices becomes durable enough to protect margins. If not, firms may have to choose between higher prices, smaller margins, operational cuts or delayed investment.
That decision will be especially important for transportation, manufacturing, retail distribution and other energy-sensitive sectors.
Additional Reporting By: Reuters; U.S. Energy Information Administration.