Tags: Financial Markets | Russia | jon huntsman | oil | price | economy | opec

Huntsman: Russia 'Shaking in Their Boots' Over Oil Plunge

Russian oil price fall on oil pump field and Russian flag background.vector illustration
(Dreamstime)

By    |   Tuesday, 10 March 2020 02:00 PM

Plunging oil prices are leaving Russia "shaking in their boots," former U.S. Ambassador to Russia Jon Huntsman Jr., who is currently running for governor of Utah, said Tuesday. 

"They want to see us divided," Huntsman told Fox News' "Fox & Friends." "They want to drive a wedge into our politics. But, I've always argued that the greatest weapon we have against the Russians is our ability to be energy self-sufficient.

"They've got enough reserve to carry them a few years, but beyond that, they're in big trouble," he added.

At the beginning of the week, oil prices dropped by 30%, marking the largest single drop since the 1991 Gulf War.

Meanwhile, Russia's President Vladimir Putin has taken aim at the U.S. oil industry and shale producers by going against the wishes of OPEC leaders and refusing to reduce oil output. Huntsman said Tuesday that Russia loves that America is suffering because of the dropping oil prices, but at the same time, Russia is suffering. 

"What happened [Monday]?" Huntsman said. "The ruble dropped 10%. In order for the Russians to make the numbers to pay their bills, oil has to be at least at 50. So, when it drops below 50, as it has over the last little while, they are shaking in their boots right now. And, they're going to have to draw from their foreign exchange reserve to be able to make the numbers work."

Russia also cannot afford for oil prices to remain low, Huntsman said, as their economy relies almost completely on energy and foreign military hardware.

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Russia is "shaking in their boots" over oil price drops, according to former U.S. Ambassador to Russia Jon Huntsman Jr., who is currently running for governor of Utah.
jon huntsman, oil, price, economy, opec
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2020-00-10
Tuesday, 10 March 2020 02:00 PM
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