The Russians will not take a back seat to anyone. That includes oil analysts from Goldman, Lehman, and Merrill Lynch who say oil may reach $200. They will not be bested by the International Energy Agency which has said oil will remain near record highs until demand drops sharply.

According to the FT, the CEO of Gazprom, the oil company controlled by the Russian government said : “Today we are witnessing a very great change for hydrocarbons. The level is very high and we think it [the price of oil] will reach $250 a barrel.”

If he is right, Russia may end up with the largest sovereign wealth fund in the world.

Douglas A. McIntyre