After years of denials $100-a-barrel oil has been recognized as a reality by Uncle Sam, reports The Wall Street Journal.

The WSJ reports that the “normally bearish” US Energy Information Administration forecasts that crude oil prices will remain above $100 this year.

Soaring demand in China, India, and Russia will continue to keep prices high. Lack of spare capacity worldwide will also continue to push up prices, according to the report.

Also driving up the oil prices are spiraling consumer prices in oil-producing nations, according to the Mogambo Guru.

“Currently, consumer prices in Venezuela are rising at 25% a year, Iran about 8% and Nigeria probably 15%.

“In short, apparently these countries need the price of oil to stay high to pay for their welfare expenses … which means that they will necessarily be raising oil prices again pretty soon, as inflation in prices is making these government welfare costs go up, which means that oil will be going up in price!”