"a recent report by Mecklai Financial shows that crude oil prices have quite a small relative correlation to the dollar index, which leaves demand as the undisputed power behind the pricing of crude oil"

I'd love to see that report you referred to above ...

I did find another review of the report on the web, and it said "Mecklai Financial finds there is a comparatively lower negative correlation of crude oil prices with the dollar index, which means the supply-demand balance has a greater role to play in crude prices".

That interpretation of the report seems quite a bit different from your own, as the meaning of "greater role" is hardly synonymous with "undisputed".

FWIW, this analysis found a very strong correlation between price of oil and the CAD/USD exchange:

http://economics.about.com/od/canada/a/exchange_ooil_2.htm