Crack spreads widen, BOE’s Bailey flags fuel price inflation

Bailey's focus on crack spreads signals a shift in central-bank monitoring toward downstream energy costs, which feed directly into consumer inflation. The surge from refining capacity losses, rather than crude alone, means fuel price pressures could persist even if oil stabilizes. For markets, the key watch is whether these spreads stay elevated enough to force tighter monetary policy responses in Europe, potentially impacting rate expectations and energy-sensitive sectors.