Alberta's Budget Surplus Hailed as War in Middle East Drives Up Oil Prices

Alberta's finances are turning around after war in the Middle East drove up global energy prices. The province's latest fiscal update predicts a $2-billion surplus for the 2026-27 fiscal year, a reversal from the $9.4-billion deficit originally expected.

The forecast is largely due to higher oil prices, with the average West Texas Intermediate price increasing from US$60.50 per barrel in the province's February budget to just above US$88 per barrel since April. For every dollar increase, Alberta's treasury gains around $680 million.

Finance Minister Jason Nixon welcomed the news but warned that energy prices can change quickly and trade uncertainty remains. He cautioned against treating the surplus as a blank cheque, stating that 'every dollar spent on debt is a dollar taken away from classrooms, hospitals, and families.'