The shape of the supply curve for oil is not linear. In fact, it is particularly curved and nearly vertical (highly inelastic in the short run) as you approach full production.
Similarly, the shape of the demand curve may be highly inelastic in the short run; people gotta drive to work.
So, it is entirely possible for the Chinese to create an additional 10% demand, and the price therefore rise 100%. Or a 50% increase in demand to cause a 500% increase in the price.
We've got curves here, not lines.
Nonetheless, one of your points is well taken: monetary profligacy masks all sorts of economics. Oil prices could be considered a speculative bubble, for example.
One of the interesting things about oil is that it is also subject to local price pressure even though it is bought and sold on a global spot market. I'll bet most folks don't know that there's actually a glut of oil here in North America. Quite simply, we are extracting crude oil from the ground faster than we can transport and refine it. That's why the price for West Texas Intermediate has been markedly lower than Brent Crude for several years -- even though WTI has historically been more expensive.