The drop of oil price falls in a “balanced” Saskatchewanese budget star-news.press/wp
Since the beginning of the year, the price of oil has fallen, endangering the “balanced” government budget in Saskatchewan. Over four months, almost 13% fell by several tens of dollars of dollars.
Last March, presenting his budget, the Government of Scott Moeko focused on its forecasts at a price of $ 71 per barrel.
In the price of barrel $ 1 falls would result in a loss of $ 17.9 million in the income.
On Tuesday, the price of barrels was 63.73. If this price had to be maintained since the start of the 2025-2026 event, which would represent a lack of about $ 130 million.
In total, the province calculated 5.1% of the income would come from sales of oil and natural gas.
Keith Willoughby, Dean of Business School Edwards school At Saskatchewan University, these figures are a signal alarm signal.
Saskatchewan is a $ 18 million headache per dollar for the government. This has a great impact on the provincial budget.
Keith Willoughby determines that it is still too early to question the budget, especially during the summer due to seasonal consumption consumption, the price of a barrel is likely to increase.
If we want to keep the price of $ 71, as planned in the budget, prices should last about $ 80 in the coming months
He believes.
According to him, the Provincial Government should communicate new estimates in Saskatchewanes and the impact on the population.
It is difficult to establish a fair forecast for the province due to prices aimed at Canada and OPEC + decision-based prices.
The latter, which includes several countries of oil exporter, smoothed supply limits to inject more oil in the market.
Joe Calnan, the Vice-President of Callagary Energy and Operations, at the Canadian Institute of World Affairs, has explained that today’s decline in today’s expected production is less than the expected demand.
The customs rates established by the United States are part of the fall of the fall of the oil barrel. (Archive photo)
Photo: Radio-Canada / Cory herperger
Too early
To give effects
The Ministry of Saskatchewan remembers the provincial budget that developed from a combination of forecasts established by the private sector experts, in mid-February.
While we hardly start the event, it is too early to evaluate the effects of the evolution of oil prices. It is common to make the price up and down a year
said the ministry in a written statement.
With the information by Shlok Talati
2025-05-14 08:00:00
