Oil prices have been “terrible” recently and Albertans need to brace for a difficult budget situation if they continue to slide, says Premier Danielle Smith.

The price of benchmark U.S. West Texas Intermediate (WTI) crude has dropped nearly 10 per cent since late July, closing below US$63 a barrel on Monday – nearly $5 below the province’s expectations in its latest budget.

And February’s fiscal plan already came with a projected deficit topping $5 billion.

What’s more disconcerting is the U.S. Energy Information Administration (EIA) last week forecast that WTI crude will average just $54 a barrel between October and December, and $47.77 a barrel next year, citing increased supplies brought online by OPEC+ countries and rising global inventory levels.

For the Alberta government, this y

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