Maybe some increased foreign demand but more-so we are destroying the dollar with QE2 which is nothing more than monetizing the national debt.
Back under Bush when gas and food prices skyrocketed we heard the same arguments, that they had nothing to do with the devaluation of the dollar until the 2008 market crash and the rush to the dollar and food and oil prices went down, Yes Virginia, the value of the dollar does affect prices after all.
And Bernke’s response to rising prices? QE2!
This tutorial might help you:Quantitative Easing Explained
How many new dollars have entered circulation with QE2 and how does that compare with the total amount of dollars in circulation?
Does that fractional increase of dollars in circulation track the general price inflation?
What is the general price inflation? Is it the CPI, which only increased .1 percent lately?
What fraction of the price increase in oil comes from monetary inflation? What fraction for demand?
Assuming that most of the price increase in oil comes from monetary inflation, what causes the monetary inflation to affect oil more than other products?