Oil prices might be nearing $70 a barrel, but that might not be enough to bail out the state’s budget shortfall. The official forecast for fiscal 2010 calls for oil prices of $53.29 cents a barrel. The price of oil would have to be above that level for an extended period of time to generate the revenues needed to revise the forecast upward and lead to surplus revenues. While forecasting oil revenues is tricky business—just ask state budget officials—some analysts say the prices could be up for a while. Glenn Darden, chief executive of Quicksilver Resources, an independent oil and natural gas producer in Fort Worth, Texas, told the New York Times he could see oil prices at between $70 to $100 a barrel. Other analysts told the newspaper they didn’t think prices would stay high because oil demand is weak, because of the worldwide recession and high inventories.
Rising oil prices may not help state budget
Sign up for the free Daily Report email – local news about the people, companies and issues that impact business impact business in Baton Rouge and beyond.
