there is increase in oil prices. how this change in the price signals information to US producers,?

Question

how this increase in price signals information to US producers, provides incentives to US producers and affects the distribution of income?

Answer 1

well it's not too good. Except for the Oil Conpanies

Answer 2

Changes in oil prices are crucial since they affect costs at every point of the supply cain e.g. cost of transporting raw materials increases, cost of delivering finished goods to the market place increases, some costs of production also increase....whereever this happens in the chain, the cost is ultimately borne by the consumer if the manufacturer hopes to maintain it's profits.....