This is the chart of Crude Oil vs. Current Money Supply. (Isn't it astonishing chart?) The fact is excess of money supply causes price to rise and that is called inflation, not other way around.

One argues that but price didn't rise from mid 80's to late 2000 despite of increasing of money supply. But reply from Mr. Paul is not surprised. He says,"Amount of exploration in late 70's & 80's caused enormous amount of production capacity in oil by major oil companies & made oil cheap. The effect was Americans got used to very cheap oil."

Furthermore, by explaining this chart below where price of oil is adjusted by money supply by Federal Reserve he says that current price of oil should be near $3.00/barrel if there was no money supply from 1959-2008. From near $3 to $135 price hike is caused by money supply and from $0 to near $3 is caused by supply-demand.
If one applies same money supply analysis with Gold, he/she shouldn't be surprised. Below here, chart of Gold from 1975 to 2008 completely matches with Oil & money supply. The difference is Oil rose faster than actual rate of inflation in parabolic pattern like gold did from 1979 to Jan 1982.
So result will be, oil could make new support near $100, but it's not going down further. It's only going up in future because we are already observing free use of money supply by Fed. So, I am not surprised when some analysts saying that oil will be reaching to 200+ & same is true with Gold & Silver.

The good news is, when Fed raises interest rate like Paul Volker had to in mid 1980's, current profit of oil companies will worth more in Dollar terms & it'll help them to increase production capacity by increasing oil exploration. But it's not coming soon until we bottom in financials.