Why is oil price running high?

Because the dollar lost value in the last year.

Back in 2002 we had 1.2€ per dollar.

That is: for every barrell the oil lords got 30$. And they used them to buy whatever they liked, especially in Europe where they got 36€ for a barrell.
Now the value of the dollar is down to 1.2 dollars per euro.
And the producers, now need 42$ to buy the same old 36€.
Add inflation, increased chinese demand, and the price would be stable at 45$.

Of course this assumes the ME only wants european goods.. a more realistic price would be around 41-42$ per barrell.

Add Yukos, which involves 2% of the world oil production and you are at 44$.

The rest is Irak' s fault.