High oil prices? Easy - increased demand primarily from China and the threat of war with Iran - are probably the two top reasons for >$100 oil. If we were to untangle ourselves from the middle east, get completey OUT of there, let Iran develop nuclear energy for themselves, there wouldn't be any pressing reasons for oil to sustain its price at such high levels. Otherwise, just keeping the threat of war on the table causes an artificially high price on the cost of oil. Trading on "Oil Futures." This is one of the most ludicrous terms of our generation. It simply puts more money in the pockets of Big Oil and the oil producing countries themselves. If you're still one of those who feels that the oil companies need to maintain their high profit margins due to "exploration" and other "research and development" programs, you need to rethink that line of reasoning. Would the cost of oil stay high if there was true peace in the world and the demand flattened? As someone else mentioned, how much was the cost of gas pre-Bush and why has it tripled since? Honestly answer that question and then let's see where this discussion leads.
And Simon was partially correct on the dollar declining too. What happened when Iraq dropped the dollar in favor of the Euro? We invaded and restored the oil trade there back to the dollar. What is happening right now seeing that Iran is now gradually phasing out the dollar in favor of the Euro and the Yen? The threat of war once again. It's going to happen either by "western friendly(dollar favored is more like it)" regime change or all out invasion and takeover.