This is part of the problem, but most of this is coming from the market trying to absorb new demand from the Middle East, China and India, which are all currently experiencing rapid growth rates. Also another reason why oil prices are going up is because of the weak dollar. The price for commodities like oil goes up whenever the dollar goes into a slump. That is the problem with a weak dollar, our money simply doesn't go as far as it once did. This also explains why the price of other goods like food is going up. The problem is partially a question of excess demand, but it is mostly a function of the weak dollar in my view.
