Here is the flaw of capitalism at play. Because the housing market is slowing the economy, investors of large financials are buying up oil stocks making oil even more expensive. Its a vicious cycle now:

The surge in energy prices is taking place as investors seek refuge in commodities to offset a slowing economy and a declining dollar. Analysts pointed out that financial institutions, such as pension funds and hedge funds, are also buying oil and other commodities such as gold as a hedge against a rise in inflation.