Alaska lowers oil price forecast, expects deficit

ANCHORAGE, Alaska (Reuters) – Alaska revenue officials said on Tuesday they have lowered their expectations for North Slope crude oil prices and are expecting a much bigger budget deficit than earlier estimated.

Prices for Alaska North Slope crude are expected to average $63.28 a barrel for the current fiscal year, according to the new forecast released by the state Department of Revenue. That is a substantial decrease from the $77.66-a-barrel average price that the department forecast in December.

The revised forecast combines expected oil prices of roughly $40 a barrel over the second half of the fiscal year with the extremely high prices experienced several months ago. Prices for North Slope crude peaked in July at $144 a barrel. Alaska’s fiscal year ends June 30.

Reuters