Oil Surge Raises Inflation Risk as G7 Rejects Emergency Stock Release

Crude briefly tops $110 a barrel after earlier spikes near $120 and then fell below $90, pushing U.S. pump prices sharply higher and renewing inflation concerns.The Group of Seven declines an emergency release and the USA refuses to tap the Strategic Petroleum Reserve, which remains depleted despite Congress approving $171M for a partial refill and analysts saying about $20B is needed to restore it.Consumers are already paying more at the pump — U.S. averages hit $3.48 a gallon and diesel climbed to $4.65 — and economists including Gregory Daco and JPMorgan estimate higher fuel costs could push inflation toward 3 percent and add roughly $150B in consumer fuel spending.Raymond James warns that higher fuel bills could rival the $129B in tax cuts tied to Donald Trump’s big tax law, and Donald Trump’s remarks that the conflict is winding down draw criticism from voices such as Seth Meyers as markets react to leaders' comments.
Published:2h |Updated:21m
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