Well there you have it, remember that oil that was going to pay for the occupation of Iraq so that it didn’t cost us taxpayers anything? It is now at $100 per barrel and we are still spending tax payer money to fund operations in Iraq.

Oil prices rose above the symbolic level of $100 a barrel for the first time Wednesday, a long-anticipated milestone in an era of rapidly escalating energy demand.

The rise of oil, which built on the 57 percent rally of last year, was driven by forecasts that U.S. stockpiles had dropped to a three-year low last week. Unrest in Nigeria, the largest oil producer in Africa, also spurred prices.

“This is the culmination of everything that we talked about last year,” said John Kilduff, vice president of risk management at MF Global in New York. “Various geopolitical problems have deteriorated overnight, in particular Nigeria and Pakistan. Commodities, and in particular oil, have become safe havens in a dangerous world.”

Unlike previous surges in oil prices this one is fueled by ever increasing demands from energy hungry giants like the US and our biggest creditor, China.