newsminer.com

If oil prices remain in the $70 range for the rest of this fiscal year, the state should take in enough to balance its budget without dipping into savings, according to Jerry Burnett, director of the division of administrative services in the Department of Revenue.

But Alaska North Slope crude fell to $67,84 today, down $3.75 per barrel.

The fiscal year continues until the end of May and prices in the past few months were high enough to give the state a temporary cushion, he said.

Last spring the state estimated that oil prices would be $83 this fiscal year.

The two big factors going ahead are how effective OPEC will be in cutting production and whether global demand will decrease because of chaos in the world financial markets.

The New York Times gave a sampling today of what price level oil producing nations need to sustain their budgets.

It said Iran and Venezuela need $95 a barrel oil to balance spending and income, while Saudi Arabia needs a price closer to $55.

"Outside of OPEC, producers like Russia are also threatened by a prolonged period of lower prices. Last month, the Russian government sent a high-level delegation to attend an OPEC meeting as observers, a sign that Moscow is anxious," the Times said.

Alaska, faced with declining North Slope oil production and as dependent on oil as any OPEC nation, is anxious as well.