While there is certianly a large amount of additional money in commodities markets, unlike stocks that does not automatically lead to higher prices, only higher volitility.  At the end of every contract speculators must either take delivery of the commodity or sell to someone else who is willing to take delivery.  Because of this, the final price is still set by buyers taking physical delivery of the oil.  The only way for speculators and hedge funds to affect the actual demand would be to buy up large quantities of physical oil and hold it off the market.  I have not yet seen any evidence that this is occuring, but if anyone has some evidence of this I'd be interested in seeing it.