This is the most important change in the global landscape for oil from past years. Typically, the higher the price of oil would rise, the less demand consuming countries would continue to assert, leading eventually to lower prices. This is just not what is going to happen this time around. True, demand in America is predicted to drop. Analysts are predicting that American demand will fall some 190,000 barrels a day this year, to "only" 49.3 million barrels a day.

So basically we are looking at a picture composed of two main ingredients: First, we have the weak dollar, and second we have consistent demand. And unfortunately, if you are hoping to see prices cool off, both of these are working against you.

Not only is demand going to remain at least constant, as we noted with emerging markets continuing to gobble up more fuel, but the dollar is showing no signs of reversing.

But hopefully the dollar can't move much lower than it already has, right? Wrong. Actually, it is looking like not only is the dollar in no rush to reverse its recent selloff, but there is a pretty good chance things are going to get worse.

The Federal Reserve is scheduled to meet again later this month, and when it does meet on the 18th, Wall Street is already starting to assume that we are going to be in store for yet another rate hike to fight off a recession.

That is good news for the market, right? Well, that depends on who you ask. Sure, it could lift equities, but it is going to apply even more downside pressure to the almighty dollar. While this will make American exports more favorable, it is going to give oil more reason to continue to move higher ... and higher it is going to go.

Will we be sitting here later this summer talking about $120, or $130 oil? I hope not ... but let's be honest, it is definitely not out of the question that we will be. We are currently in the time of the year when heating oil demand should be falling, and the summer driving months are still not quite upon us. We should be in a lull for oil prices, but instead we are at record levels. What is going to happen once the summer driving months really kick in? That is the real question.

Will Americans continue to plan long trips, despite the rising gasoline costs, or will we actually tighten up our belts and start using less gasoline this summer? Only time will tell.

What about our BloggingStocks readers? How have the recent surge in oil / gasoline prices effected your life? Have you been cutting back on your driving, or just assumed that high gas prices are just a fact of life? Let us hear from you!