Why Oil Prices Are Likely To Go Higher
Oil Price.com, Nick Cunningham, May 7, 2018
WTI just hit $70 per barrel for the first time since late 2014. Prices continue to edge higher, pushed along by strong demand and falling inventories. But it is the geopolitical narrative that has really taken hold as of late, with the danger of supply outages looming in the next few weeks. This is the fateful week in which the Trump administration has to decide on what to do with the Iran nuclear deal. All signs point to him attempting to terminate the agreement. The return of sanctions could knock off as much as 400,000 to 500,000 bpd from Iranian supply, a huge volume that would put the oil market in danger of a shortage.
Our Take: A continued increase in the price of oil is obviously good for Alaska, however, the Alaska state legislature should still focus on a long-range fiscal plan that is less dependent on oil tax revenue.
GUEST COMMENTARY: The deception of Stand for Salmon
Alaska Journal of Commerce, Curtis Thayer, May 7, 2018
The Alaska Chamber has long been an outspoken voice for pro-business policies that grow our economy and create economic opportunities for Alaskans. For several years, especially during the recent economic slump, we’ve advocated for a state fiscal plan that limits government spending and supports private sector growth. Our annual public opinion survey found that 60 percent of Alaskans rate the state’s economy as poor. It’s a shocking number, and an indicator of how pessimistic Alaskans are about their ability to work and make a living here. Alaska already has the unwanted distinction of having the highest unemployment rate in the country. Getting our economy and our state back on track requires some hard decisions and a vision for the future, but, in the short term, we have some serious obstacles right before us.
Our Take: The threat to Alaska’s economy is real, but this misguided ballot initiative also threatens individual Alaskans and their private property rights.