Oil prices took another hit at the start of the week, with U.S. crude dropping below $60 a barrel and Alaska North Slope falling to under $68 a barrel. This trend is concerning for Alaska, as the state heavily relies on oil revenue to fund over a third of its budget.
The Department of Revenue’s most recent forecast is based on oil prices of $74.48 per barrel for the current budget year and $68 per barrel for the next fiscal year. This comes as the state already faces a deficit of around $1.6 billion. Alaska North Slope West Coast oil was priced at $68.47 per barrel as of Friday, significantly lower than the 52-week high of around $89 per barrel seen a year ago.
The price of oil has been fluctuating in the low-$60 range since 2021, following record lows in 2020. This volatility has significant implications for Alaska’s budget planning and financial stability. To track oil prices over the years, you can refer to the Department of Revenue’s oil pricing chart dating back to 1996.
In light of these developments, oil and gas analyst Larry Persily shared insights on the current state of the market. Despite these challenges, Alaska continues to navigate the impact of fluctuating oil prices on its economy. For more information on this topic and other news updates, visit KTUU’s website.
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