Consider that the oil companies only make profits when oil prices are rising. Consider that inflation has been so low, even during a booming economy, that many corporate executives were scared of deflation. Aparently oil wars have always preceded stagflation. Consider that inflation and deflation has not necessarily been linked to the strength of the economy in the past 30yrs which means the economic assumptions of both Marxists and Classical economists have more or less been stumped. Both groups assumed inflation was related to a fast growing economy, and deflation was related to a bad economy.
In the 70s you had a weak economy and high inflation and in the 90s you had a strong economy and low inflation. Both the Marxists and the neoClassisical economists assumed these things to be freak unexplaned anomolies. Aparently they are not.
There is an explanation. Please listen to Johnathan Nitzan for a much more concise explanation than I can provide.
http://bnarchives.yorku.ca/archive/00000056/
Keep in mind this interview was done before the Iraq war started. Compare his prediction to what is going on now with the drop in the value of the dollar, and the rise in oil prices.