Following the summit in Madrid this past week, OPEC president Chakib Khelil announced that prices will go higher soon. He also emphasised that the cause of higher prices is the US dollar and bioethanol. My understanding is that bioethanol would relieve some demand thus lowering oil prices, but the president of OPEC claims otherwise (from Xinhua):

ALGIERS, July 6 (Xinhua) — Oil prices are likely to rise further largely due to a weak dollar and geopolitics, Chakib Khelil, president of the Organization of the Petroleum Exporting Countries (OPEC), said Sunday.

The minister denied accusations by some western countries that insufficient supply by the oil producing countries are causing the soaring prices.

“The price of oil will rise again in the coming weeks. We have to follow the evolution of the dollar, because a 1 percent fall in the dollar means four dollars more on the price of oil,” Khelil said in an interview with the local daily Algeria-News.

“I believe that 60 percent of the rise is due to the fall in the exchange rate of the dollar and to geopolitical problems, and 40 percent to the intrusion of bioethanol on the market,” he said.