$3.8B Surplus in Alberta's Finances Due to Soaring Oil Prices

An unexpected surplus of $3.8 billion has emerged in Alberta's finances due to high oil prices, according to economist Trevor Tombe.

The University of Calgary professor estimates that every $1 per barrel change in oil prices translates to a $680 million impact on the government's bottom line.

Tombe points out that the current surplus is a significant swing from the projected $9.4 billion deficit, which was tabled just days ago when West Texas Intermediate (WTI) crude oil prices were at US$60.50 per barrel.

The economist notes that Alberta needs WTI to be at least US $66 per barrel to balance the budget by next March.