Supply and demand: As the demand decreases, the value declines. That would lead to inflation in the US. The reason for the rise in oil prices has been the lack of strength of the dollar vis-a-vis major foreign currencies. This causes the price of oil, denominated in dollars, to increase. When the dollar falls against the Yen, Euro, Pound, etc, it takes more dollars to buy a barrel of oil, but when Yen, Euros, etc are converted to dollars, and then to oil, the Japanese, Brits, EU nations don't notice a large price increase.
Bottom line: The world is headed that direction and we're feeling the ill effects. A debtor nation cannot expect a strong currency.